WMT Options Signal Bullish Bias: Calls at $120–$122 Dominate as AI-Driven Momentum Builds

• WMT trades at $119.4, down 0.53% from $120.04, with intraday support at $119.2 and resistance near $120.87.
• Call open interest (OI) dominates at $120 (16,187) and $122 (24,898) for Friday’s expiration, while puts skew to $90 (32,491) and $110 (17,900).
• Block trades highlight a $3M put sale at $115 (WMT20260116P115) and a $1.05M put block at $115 (WMT20260417P115), hinting at hedging activity.

The options market is whispering a bullish story: Despite a slight price dip, the call/put OI imbalance (0.85 ratio) and heavy call positioning at $120–$122 suggest traders are pricing in a near-term breakout. The key question is whether Walmart’s AI-driven retail revolution can fuel that move.Bullish OI Clusters and Whale Moves

Let’s start with the numbers. The top OTM calls for Friday’s expiration are clustered at $120–$122, with 24,898 contracts at $122 alone. That’s not just noise—it’s a vote of confidence in a potential $122.50+ move. Meanwhile, the $90 put block (32,491 OI) feels like a deep out-of-the-money hedge, likely from institutional players betting on a sharp rebound if the stock dips.

But don’t ignore the block trades. The $3M sale of WMT20260116P115 puts (strike $115) is telling. It’s a bearish hedge, but the sheer size suggests someone’s bracing for a short-term pullback. Yet the $1.05M WMT20260417P115 block (same strike) points to longer-term positioning—maybe a hedge against a broader market selloff in Q1 2026.

AI News and Analyst Hype Fuel the Fire

Walmart’s AI partnerships with OpenAI and Google are no longer just buzzwords. The company’s chatbot integrations and instant checkout features are real, and analysts are taking notice. Oppenheimer and Barclays both raised price targets to $125–$128, citing AI’s potential to boost margins and customer retention. That’s not just Wall Street optimism—it’s a green light for traders to lean into the $120–$122 call clusters.

But here’s the catch: The stock’s 45x 2026 earnings multiple is a double-edged sword. While AI progress justifies some premium, a slowdown in consumer demand or margin pressures could trigger a re-rating. The block trades at $115 and $110 puts might be a hedge against that risk.

Actionable Trade Ideas

For options traders, the $120 and $122 calls expiring Friday (WMT20260116C120 and WMT20260116C122) are prime candidates. If WMT breaks above $120.87 (intraday high), these strikes could see sharp gamma-driven acceleration. For a longer play, the $120 call expiring next Friday (WMT20260123C120) offers leverage if the AI narrative gains steam.

On the stock side, consider entry near $119.2 (intraday low) with a target at $122.50. A breakdown below $119.2 would justify a short-term put spread at $115–$110. For risk-averse traders, a bullish iron condor (short $120–$122 calls and $115–$110 puts) could capitalize on the OI clusters while capping downside risk.

Volatility on the Horizon

Walmart’s AI-driven retail revolution is still in its early innings. The options market is pricing in a $120–$122 breakout, but the block trades at $115 and $110 suggest a floor exists if the stock stumbles. The coming weeks will test whether the AI hype translates to real earnings growth—or if the 45x multiple becomes a liability. For now, the data leans bullish, but keep an eye on the $119.2 support level. If it holds, the $122.50 target feels within reach.