Wrote Naked Put on WMT

Walmart (WMT) took a sizeable step lower after AMZN made the offer to buy WFM last week. I thought the drop was overdone, so the following day, I entered a limit order to write a naked put on WMT. It took a few days for the order to hit, but it triggered today. While WMT was trading at $74.87, I sold one WMT August $75 naked put for $2.25 and received $224.32 after paying $0.68 in commission.

I don’t expect WMT to fall much more and see strong support close to $73.30 and just below $70 as you can see in the chart in my video posted here. If WMT drops that low and I see support, I might sell another naked put at a lower strike to dollar cost average my price a little.

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