WMT Iron Butterfly — Sep 18, 2026

WMT (Walmart Inc. - Common Stock) presents a iron butterfly opportunity with elevated implied volatility. IV Rank 60. IV 2182.0% trades 503.0pp above 30-day HV (1679.0%). This setup favors net premium sellers.

Sell the $115 ATM put and the $115 ATM call simultaneously (both at the same strike near the underlying), with long wings further out for defined risk. Higher max profit than a condor but a tighter profit window — ideal when you expect a stalling move into expiration. Underlying ~$115.27, 30 DTE. Max profit $629 per contract, max loss $371, 169.5% return on risk, 24% POP. Breakevens at $108.71 and $121.29.

Management: take profit at ~50% of max profit ($315). Cut at 2x credit ($1258 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.

Underlying: WMT @ ~$115.27 Expiration: Sep 18, 2026 (30 DTE) Net credit (entry): ~$629.00 per spread Legs:

• Sell WMT Sep 18, 2026 $115 Put (delta -0.41, mid $3.08)
• Buy WMT Sep 18, 2026 $105 Put (delta -0.10, mid $0.51)
• Sell WMT Sep 18, 2026 $115 Call (delta 0.59, mid $5.00)
• Buy WMT Sep 18, 2026 $125 Call (delta 0.23, mid $1.27)

Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~4.4% of mid) before sending.

Take profit at 50% of max profit ($315). Cut loss if position reaches 2x credit received ($1258 loss). Roll if tested with > 14 DTE remaining.