Let’s put some capital to work by selling a bull put spread on Walmart (WMT). The big-box retailer is a play on consumers looking to save money in a challenging economy.
We’re going with a top leg that is a little more than 4% out of the money with a potential 4.4% return on our capital.
If you are new to spread trading, please watch the Bull Put Spread Coaching before entering the trade.
Current Stock Price: $145.24
ACTION: Sell to open WMT Apr Week One (4/6) 139 Put for around $0.36 and buy to open the WMT Apr Week One (4/6) 134 Put for around $0.14. Set initial credit limit at $0.22.