WMT Options Signal Bullish Momentum: Key Strike Levels and Trade Setups for Dec 5 Expiry

• WMT trades at $111.76, up 0.21% with a 30D MA at $104.35 and RSI near overbought (70.88).
• Call OI dominates with $114 (OI: 3,251) and $112 (OI: 2,225) as top strikes for Friday expiry.
• Put/call ratio at 0.87 (calls > puts) suggests aggressive bullish positioning ahead of key expiries.
• Recent news highlights $350M milk plant investments, 27% e-commerce growth, and upgraded analyst targets ($118.55 avg).

The stock is primed for a breakout—options data and fundamentals align for a push above $114, but watch for short-term profit-taking at $112.Bullish Sentiment Locked in OTM Calls

Options market activity tells a clear story: traders are betting on a near-term rally. The top OTM call strikes for Friday (Dec 5) show heavy open interest at $114 (3,251 contracts) and $112 (2,225), while puts are concentrated at $106 (4,878) and $99 (3,539). This imbalance—calls outpacing puts by 1.14x—suggests a strong conviction in upside potential. The MACD histogram (0.97) and RSI (70.88) also hint at momentum building, but overbought levels mean a pullback to $110.79 (intraday low) could trigger short-term profit-taking.

Company News Fuels the Narrative

Walmart’s recent moves—$350M in U.S. milk processing, a third plant in Texas, and 27% e-commerce growth—validate the bullish case. Analysts raised price targets to $119–$125, and the stock’s 52-week high at $111.76 shows retail and institutional buyers are aligned. However, insider sales (e.g., $1.4M in November) add a layer of caution. The key here is whether the market sees these sales as opportunistic or a sign of internal doubt. Given the broader context of margin improvements and digital integration, the latter seems unlikely.

Actionable Trade Setups

For options traders, the WMT20251205C114 call (Dec 5 expiry) is a high-conviction play if the stock breaks above $111.84 (intraday high). A smaller but viable alternative is the WMT20251212C113 (Dec 12 expiry) for a longer-term bet. For stock buyers, consider entry near $111.40 (today’s open) with a target at $114 (key call strike) and a stop-loss at $109.50 (below Bollinger Band middle). A put spread at $106–$99 could hedge downside risk if volatility spikes.

Volatility on the Horizon

With Walmart’s fundamentals and options data in sync, the next 72 hours will be critical. A close above $112.50 could trigger a cascade of call options to be assigned, pushing the stock toward $115. Conversely, a drop below $110.50 (Bollinger Band lower) might force short-covering. Either way, the 30D support at $102.35 remains a psychological floor. For now, the data leans decisively bullish—this is a stock with momentum, capital, and a clear path higher.

Final Take

Walmart isn’t just a retail giant—it’s a case study in how strategic investments and digital integration can drive both earnings and stock price. The options market is pricing in a $114+ move by Dec 5, and the fundamentals back it up. But don’t ignore the puts at $99–$106; they’re a reminder that even strong stocks can face short-term turbulence. Play it smart: use the calls for upside, the puts for protection, and let the data guide your entries.

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Note: All data as of Dec 2, 2025. Past performance is not indicative of future results. Always conduct your own due diligence.