A great opportunity is on the horizon with Wal-Mart Stores Inc. (WMT)
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Shares in Wally World are down an astounding 20.9% from the high. Annualized yields around 16% are available on near the money puts at the moment. But it is too soon to pull the trigger. The oldest saw in finance is to never “catch a falling knife.” If we are patient, WMT will eventually start to carve out a bottom and trade sideways before heading back up.
Action to take: Watch Wal-Mart Stores Inc. (WMT). Once there has been at least three weeks of “sideways” price action, write near the money puts with an expiry 6 to 8 weeks out. Accept no less than a 12% annualized yield.
Watch Wal-Mart Stores Inc. (WMT)