Walmart Stock Could Nab More Record Highs

Walmart (NASDAQ:WMT) has pulled back to its 50-day moving average, a trendline that has historically yielded a 6% return and 61%-win rate over the last 10 years. The shares have worked off their overbought condition from February and are flashing bullish options signals to boot.
 

WMT’s 20-day buy-to-open put/call volume ratio just moved above 1.0 and near two-year highs. Extremes of this ratio generally precede bullish price action. Short interest, meanwhile, is up 200% since October and near all-time highs, even as the stock nabs records left and right.
 
Our May call has a leverage ratio of 8.4 and will double on a 11.4% rise in the underlying equity.