WMT Options Signal Bullish Momentum: Here’s How to Position for Earnings and Volatility

• WMT surges 3.38% to $133.12, breaking above its 30-day moving average of $119.48
• Options data shows heavy call open interest at $135 and $139 strikes, while puts dominate at $117 and $120
• Upcoming earnings on Feb 19 and a $131.79 all-time high hint at mixed catalysts

The stock’s 3.38% rally today isn’t just noise—it’s a signal. Options traders are piling into calls above $135, while massive put volume at $117 suggests a wariness of downside. Here’s how to navigate the tension between bullish momentum and looming risks.Where the Money Is Flowing: Calls, Puts, and Whale Moves

Let’s start with the options chain. For Friday’s expiration (Feb 13), the top call open interest sits at $135 (1,366 contracts) and $139 (1,567 contracts), while puts dominate at $117 (7,316 contracts) and $125 (5,201). This isn’t just a bullish story—it’s a strategic one. Traders are hedging for a potential pullback but betting on a push above $135 if Walmart’s earnings (Feb 19) exceed expectations.

The next Friday (Feb 20) data sharpens the focus. Calls at $135 (7,850 OI) and puts at $105 (15,340 OI) show a stark divide. But here’s the kicker: a block trade of 2,000 puts at $130 (WMT20260220P130) was executed today. That’s not just noise—it’s a hedge. Someone big is bracing for a dip before the earnings report.

News That Could Tip the Scales

Walmart’s recent all-time high of $131.79 and expansion into Jacksonville (400 new jobs) are bullish. Analysts from RBC and Oppenheimer have raised price targets to $140, which aligns with the $135–$139 call-heavy zone. But the Estée Lauder lawsuit over counterfeit products introduces a wildcard. Retailers face reputational risks fast—this could pressure the stock if sentiment shifts.

The earnings call on Feb 19 is the linchpin. If Walmart reports stronger-than-expected holiday sales (FY2025 revenue was $681B), the $135–$139 calls could ignite. But the lawsuit and block trades suggest a floor around $130. Think of it like a seesaw: bullish momentum vs. legal headwinds.

Trade Ideas: Calls for the Brave, Puts for the Cautious

For options traders, the WMT20260220C135 call (expiring Feb 20) is a high-conviction play. If WMT holds above its intraday high of $133.88, this strike could catch a tailwind from earnings optimism. For downside protection, consider a bear put spread using WMT20260220P130 and WMT20260220P120—the block trade at $130 hints at support.

Stock buyers should target an entry near $133.12 (current price) with a stop-loss below $130. A breakout above $135 would validate the bullish case, targeting $139 as a psychological hurdle. For the cautious, a cash-secured put at $130 could generate income while hedging against the lawsuit risk.

Volatility on the Horizon

Walmart’s story is a classic tug-of-war: strong fundamentals vs. legal risks, bullish options vs. bearish hedges. The RSI at 72.29 suggests overbought conditions, but the MACD histogram (0.74) and bullish Kline pattern argue for a short-term rally. Earnings will be the catalyst—either a $139 push or a $130 test. Position yourself to capitalize on the former while guarding against the latter. The next five days could define WMT’s 2026 trajectory.