Walmart (WMT) Options Signal Bullish Setup at $110 Strike: Here’s How to Play the Leadership Transition Play

• Walmart’s CEO transition sparks short-term volatility but long-term optimism
• Options data shows heavy call open interest at $110 strike, signaling bullish conviction
• Technical indicators hint at a potential breakout above $103.34 resistance

Let’s cut to the chase: Walmart’s stock is at a crossroads. The recent leadership change—John Furner stepping into Doug McMillon’s shoes—has rattled short-term nerves, but the options market and technicals are painting a clearer picture. The stock is trading near key support at $102.43, with call options at the $110 strike showing explosive open interest. Here’s how to navigate this setup.

Bullish Sentiment Locked in at $110: Decoding the Options Imbalance

If you’ve been watching the options chain, you’ve noticed the elephant in the room: 21,569 open interest at the $110 call strike (expiring this Friday). That’s not just noise—it’s a vote of confidence. Calls at $105 ($15,467 OI) and $115 ($11,772 OI) back this up, forming a tight cluster of bullish bets. Meanwhile, puts at $92.5 ($31,984 OI) and $90 ($12,879 OI) act as a safety net for downside risks.

The put/call ratio for open interest is nearly balanced at 0.95, which means the market isn’t leaning heavily one way. But the concentration of calls above $105 suggests a target: traders are pricing in a potential rally to test the $110 level. Why does this matter? Because when a strike has that much open interest, it often becomes a self-fulfilling prophecy—liquidity attracts liquidity.

Block trades? None. That’s telling. No big whales are moving the needle here. This is a crowd-sourced bet, not a top-down manipulation. The risk? If earnings on November 20th disappoint, the $102.43 support could crumble, dragging the stock toward the 200D MA at $97.81.Leadership Transition: A Catalyst, Not a Crisis

Let’s talk about the elephant in the room: Doug McMillon’s retirement. The stock dipped on the news, but analysts are framing this as a continuity play. John Furner isn’t a stranger to the role—he’s already running U.S. operations and has a track record of scaling e-commerce and AI-driven fulfillment. Telsey Advisory Group’s $118 price target (15% upside) hinges on his ability to maintain this momentum.

Here’s the kicker: the options market isn’t pricing in panic. The heavy call interest at $110 aligns with Telsey’s target, suggesting the crowd agrees with the analysts. But don’t ignore the puts. The $92.5 strike has massive open interest, which could act as a floor if sentiment shifts. Retail investors and institutions alike are hedging their bets—this isn’t a one-way trade.

Actionable Trades: Calls at $110, Puts at $92.5, or a Core Position Near $102.43

Let’s get practical. If you’re bullish on the leadership transition and the $118 price target, buy the WMT 11/21 $110 calls (OI: 21,569). The stock needs to break above $103.34 (upper Bollinger Band) to make this work, but the RSI at 48.56 and MACD near zero suggest it’s primed for a rebound.

Bearish? The $92.5 puts (OI: 31,984) offer a cheap insurance policy. If the stock gaps down on earnings or news, these will gain value fast. For a core position, consider buying WMT near $102.43 (30D support) with a stop-loss below $101.71 (intraday low). A breakout above $103.34 could target $107.02 (upper Bollinger Band), while a breakdown risks $97.04 (200D support).

Volatility on the Horizon: Earnings and the Black Friday Playbook

Walmart’s Q3 earnings on November 20th will be the next big catalyst. Management’s commentary on AI, e-commerce, and holiday prep will either validate or shatter the $118 target. The options market is already pricing in this event—calls at $110 expiring next Friday (OI: 1,849) are a smaller but meaningful bet on a post-earnings pop.

Here’s the takeaway: this isn’t a high-risk gamble. The options data, technicals, and news flow all point to a stock at a pivotal moment. If you’re in, play it with the $110 calls or a core position near support. If you’re cautious, the $92.5 puts are your safety net. Either way, the next few weeks will tell the story. And right now, the script is written for a bullish breakout.