Sold a Long WMT Call

On 2/26 Walmart (WMT) did a 3:1 split. WMT is not the type of stock to make big moves, not even after a split, but I used my split strategy to try to make a few bucks. On 2/27 I bought 2 WMT Calls. A 1 contract Call that would expire in June and a 1 contract Call to expire in September. I just sold the June Call. The stock didn’t make much of a move after the split so I decided to sell my June Call to free up a few dollars and keep the September Call for a possible bigger gain. You can read about me getting into these Calls here.

The Call I sold today I bought for $2.25 and sold for $3.25. Not much but I’ll take it!

 

2/27/24 – Buy to Open 1 WMT 6/21/24 $60.00 C @ $2.25

3/22/24 – Sell to Close 1 WMT 6/21/24 $60.00 C @ $3.25

Profit +$100

 

I was in the position for a month. I invested $225 and pulled out $325 for a $100 gain. When I got into the position my goal was to get a return in the area of 50%. Which is high but for a splitting stock I felt it was possible. I invested $225 and made $100. That’s a Return on Investment (ROI) of 44.4%.

I’m just getting back into my trading, if this opportunity came a few years ago I would have bought 10 or 20 contracts. Making 44% on that size position is very nice.

I still own a 1 contract position expiring in September. Let’s watch and see how that will do.

I will watch Walmart closely. I might consider buying a 5 contract LEAPS position that would expire in Jan 2025. I think it would be a winner; I will see if I want to tie up that cash at this point of my return. But I think it would be a good investment. I even considered buying and holding the stock. Right now I own 325 shares. I might round it off to 500 shares.

 

Successful trading,

Steve

The Options Coach