A great opportunity is on the horizon with Wal-Mart Stores Inc. (WMT)

music selection: “Six Underground” — Sneaker Pimps

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)

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