Let’s go shopping!
I am seeing a bullish engulfing candlestick formation in … Walmart (Ticker: WMT):
Thursday’s candle was green and completely engulfed Wednesday’s candle, which is a bullish signal. Friday’s candle confirmed.
I think WMT will trade higher this week and could trade back to $144, so I will be buying calls in the June 18 expiration cycle.
They will be the cheapest — but will also decay the fastest, so I need a move today and tomorrow.
I will pay around $.80 for the June 18 141-strike calls.
As you can see, there aren’t really any out-of-the-money calls to sell against the 141 calls, which is fine since I am only paying $.80.
If these calls trade down to $.65, I will take my losses.
I will begin profit taking at $1.50 and higher.
Thanks for Reading … See You Next Tuesday!