Blue-Chip Big Box Retailer Preparing for Earnings

Walmart Inc (NYSE:WMT) is gearing up for its first-quarter earnings report, due out before the open tomorrow, May 16. When we last covered the blue-chip, big box retailer, it saw an uptick in bullish options activity after a 3-for-1 stock split and new store plans. In the time since, WMT hit a record high of $61.66, and was last seen 0.2% lower to hover just below that peak at $59.76.

Options traders are pricing in a 5.9% swing for Walmart stock following the earnings event, which is slightly higher than the average 4.8% move the stock has made after earnings over the past two years, regardless of direction. Digging deeper, the stock has seen mostly positive post-earnings reactions, moving higher in five instances in the last eight quarters.

There's more bearish activity in the options pits ahead of the event. So far, 32,000 puts have exchanged hands, which is double the intraday average volume though less than the 48,000 calls traded today.

 In the short-term, the $58.50 area has stepped up to save WMT's pullbacks. Over the last 12 months, Walmart stock is up 19.5% and it boasts a 13.6% year-to-date lead.