Large show of support for Wal-Mart
Heavy put selling in Wal-Mart is looking for the recent gains to hold.
Just over 23,000 November 77.50 puts have traded so far today, almost 10 times its daily average. Prints of 8,644 and 8,645 were sold at the same second for $0.73 and $0.72 respectively in volume far above the strike's previous open interest of just 2,570.
The put sale is a bet that WMT will hold above $77.50 through the end of next week. The trader takes the risk of having to buy shares--in this case more than 2 million of them--if the stock falls below that strike price. (See our Education section)
WMT is down fractionally at $77.87 this morning. The retail giant has run up from support at $72 in the last month. Shares had resistance at that $77.50 level until they pushed up through it yesterday.
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