http://finance.yahoo.com/news/wal-mart-expects-profit-fall-162319792.html http://stockcharts.com/h-sc/ui?s=wmt I used to always have a bull put spread on WMT but changed to a bear call spread at the beginning of 2015. There will be a trade in here somewhere... The retail space is in flux to say the least.
Why Wal-Mart’s record plunge is bad news for the broader market http://www.marketwatch.com/story/wh...r-the-broader-market-2015-10-14?siteid=yhoof2
Nothing is normal when an entire industry is disrupted like this. Being a business that affects both consumers and companies across the board and losing revenue so fast is a first.
http://stockcharts.com/h-sc/ui?s=wmt http://stockcharts.com/h-sc/ui?s=tgt http://stockcharts.com/h-sc/ui?s=xlp http://finance.yahoo.com/q/hl?s=XLP+Holdings http://stockcharts.com/h-sc/ui?s=KR http://stockcharts.com/h-sc/ui?s=amzn http://www.cnbc.com/2015/10/15/reasons-to-be-bullish-on-wal-mart-analyst.html?__source=yahoo|finance|headline|headline|story&par=yahoo&doc=103082197 I don't see any worthwhile trade in here yet.
After the huge drop, I would wait at least 3 or 4 days to see if it bounces. If it doesn't bounce up, then the drop is real and I would get in with ATM puts if there is a red bar with higher volume. Good luck!
I'm sure most people's experience with online shopping is similar to mine. Probably half the time now I don't even want to bother driving to Walmart, Fry's, or another retailer to buy something, especially if I can buy it cheaper and get free shipping, such as from Amazon, as well as do online comparisons of pros, cons, and further online research when necessary. I sometimes buy off of Walmart.com if I it's cheaper than Amazon since not every item on Amazon is cheaper. For the options on WMT, I think the stock has already been sold so hard and downgraded that it may be temporarily oversold, thus short term not much downside. The stock may be rangebound for a while. It's only at ~12.5x PE current and forward right now vs. PE 21.5 for S&P 500. http://www.multpl.com/s-p-500-earnings/table