WMT Credit Call Spread (Bear Call) — Dec 18, 2026
Trade Setup
Current Stock Price
$124.80
Entry Price
$132.00
Target Price
$66.00
Stop Loss
$264.00
Expiration
Dec 18, 2026
Suggested Contracts
1
Strike Details
Sell 135C / Buy 145C
Risk / Reward
Max Loss
$868.00
Max Profit
$132.00
Analysis
WMT (Walmart Inc. - Common Stock) presents a credit call spread (bear call) opportunity with very elevated implied volatility. IV Rank 78. IV 3555.0% trades 790.0pp above 30-day HV (2765.0%). This setup favors net premium sellers.
Sell the $135 call and buy the $145 call for protection. Bearish/neutral setup — profits if WMT stays below $135 at expiration. Defined risk equal to the spread width minus credit collected. Underlying ~$125.52, 39 DTE. Max profit $132 per contract, max loss $868, 15.2% return on risk, 76% POP. Breakeven at $136.32.
Management: take profit at ~50% of max profit ($66). Cut at 2x credit ($264 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.
Setup Instructions
Underlying: WMT @ ~$125.52 Expiration: Dec 18, 2026 (39 DTE) Net credit (entry): ~$132.00 per spread Legs:
- Sell WMT Dec 18, 2026 $135 Call (delta 0.24, mid $1.82)
- Buy WMT Dec 18, 2026 $145 Call (delta 0.09, mid $0.50)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~3.3% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($66). Cut loss if position reaches 2x credit received ($264 loss). Roll if tested with > 14 DTE remaining.