I am seeing a bullish candle in the Walmart (Ticker: WMT) stock chart:
Friday’s candle completely engulfed Thursday’s red candle, which could be a signal of a bounce.
And yesterday’s candle confirmed the end of this mini downtrend since Aug. 18.
I think WMT will trade back up $152.
Looking at the options, I will pay up to $1.75 for the Sept. 17 148-strike calls.
There aren’t any calls further out of the money to sell, so I will just buy these outright.
If they trade down to $1.20, I will take my losses. On the upside, I will begin to take my profits around the $3.00 area.
- The General Motors (Ticker: GM) Sept. 10 50-strike calls have gotten away from me a bit, but I do believe these could make money by Friday. If I don’t get a move to the upside today, I will close them.
- The iShares MSCI Japan ETF (Ticker: EWJ) made the move higher and traded $68.69 yesterday. My Sept. 10 68 calls traded higher, but the volume wasn’t there. This is very important when you are deciding on the size of your trade. If an option class isn’t trading very much volume you could get stuck holding your options or selling them at reduced prices. I will exit these by Friday.
- In Coca-Cola (Ticker: KO), my Sept. 17 55.50-strike calls are up nicely, I will sell these $1.25 and higher.
Thanks for Reading … See You Next Tuesday!