WMT Options Signal Bullish Momentum: Calls at $125, Puts at $90 Highlight Key Levels for Traders

• WMT surges 2% to $120.33 on Nasdaq-100 inclusion news and record volume of 17.4M shares
• Options market shows heavy call open interest at $125 and $130 strikes, while puts dominate at $90
• Put/Call ratio of 0.85 suggests bullish bias, but extreme OTM puts hint at downside hedging

The stock’s 2% intraday pop isn’t just a fluke—it’s a signal. With WMT trading near its all-time high and options buyers stacking calls above $125, the market is pricing in a strong near-term outlook. But don’t ignore the $90 put wall either—there’s a reason big money is hedging. Let’s break down what this means for your strategy.Bullish Fireworks at $125, but a Bearish Safety Net at $90

Options data tells a story of cautious optimism. This Friday’s top call strikes ($125, $130, $140) show heavy open interest, with the $125 call alone holding 10,146 contracts. That’s not just noise—it’s a bet that WMT will hold above $120 and test new highs. The RSI at 61.2 and MACD crossover above zero back this up.

But here’s the catch: the $90 put strike has a staggering 32,491 open contracts. That’s like a financial insurance policy for a 25% drop. While the put/call ratio (0.85) leans bullish, those extreme OTM puts suggest some big players are bracing for volatility. No significant whale trades today, but that $90 wall could act as a magnet if the stock stumbles.

Nasdaq-100 Inclusion Fuels the Narrative

Walmart’s index addition isn’t just symbolic. The stock replacing AstraZeneca in the Nasdaq-100 means institutional buying from ETFs and index funds starting Jan 20. Analysts are already penciling in $123.88 as a target, and insider Shishir Mehrotra just bought $93K in shares. This isn’t a short-term gimmick—Walmart’s AI-driven retail push and $700B revenue engine are real catalysts.

But here’s the rub: a 41.2x P/E is a premium for a retail stock. If earnings miss expectations, those $90 puts might get a workout. The good news? Bollinger Bands show the stock has bounced off the middle band ($113.73) and is trending upward—so long as it stays above $117.73 (lower band), the bulls stay in control.

Trade Ideas: Calls for the Bold, Puts for the Pragmatic

For aggressive traders: Buy WMT20260116C125 (this Friday’s $125 call) if WMT breaks above today’s high of $120.42. A close above $121 would validate the move, and the $125 strike could run if the stock hits $123.88 (analyst target). For a safer play, go with WMT20260123C121 (next Friday’s $121 call) as a leveraged bet on the Nasdaq-100 rotation.

For risk-averse: A put spread at WMT20260123P113 and WMT20260123P112 could cap losses if the stock dips. With WMT trading at $120.33, a $113/$112 vertical spread costs less than a straight put and profits if the stock drops below $113.

Stock traders: Consider entry near $119.73 (today’s intraday low) with a stop below $117.73. First target is $123.88 (analyst average), then $125 (call-heavy zone). If the stock closes below $116 tomorrow, re-evaluate—those $90 puts might get a workout.

Volatility on the Horizon: Balancing Bullish Momentum and Strategic Caution

WMT isn’t just riding a news-driven wave—it’s positioning itself as a tech-driven retail giant. But with a 41.2x P/E and a 12.5% premium to its 100-day SMA, this isn’t a no-brainer. The options market is pricing in a 20% range (from $90 to $140), so your job is to pick your spot. If you’re bullish, the $125 call is your fireworks. If you’re hedging, the $90 put is your net. And if you’re somewhere in between? A $121 call next week gives you time to see how the Nasdaq-100 inclusion plays out. Either way, this stock isn’t going to trade in a straight line—but that’s where the opportunities live.