Wal-Mart is trading at all-time highs, but heavy option activity is betting that further gains will be limited.
WMT is up 0.84 percent to trade at $72.36, on pace for yet another high. The discount-retail giant bounced off support at $58 in late April.
More than 68,000 WMT options have changed hands today, compared with a daily average of 18,000 contracts, as calls outpace puts by nearly 4 to 1. optionMONSTER's systems show that more than 42,000 January 75 calls have traded against open interest of 3,556 contracts, with an enormous print of 39,257 sold for $1.80.
The calls may have been sold as a simple bet that WMT won't trade above the $75 strike price by expiration in mid-January. The trade would have an initial bearish bias but could profit with WMT anywhere below $76.80 at that time.
The options could also have been sold against long shares in a covered call position. That could be bullish up to the strike price but would give up any upside with the stock above that level. (See our Education section)
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