On CNBC's "Options Action," Bonawyn Eison said calls outpaced puts 3 times to 1 in Walmart Inc (NYSE:WMT), on Monday. The stock reports earnings on Tuesday before the market opens, and the options market is implying a move of 4% between now and Friday. The stock moves 1.1% on average on the event.
Eison noticed 15,000 contracts of the November $155 calls were traded for $2.20 during the session on Monday. The trade breaks even at $157.20 or around 3.1% above the current stock price.
Walmart reported quarterly earnings of $1.34 per share, which beat the analyst consensus estimate of $1.18. The company reported quarterly sales of $134.70 billion, which beat the analyst consensus estimate of $132.23 billion.