Expecting Walmart (WMT) stock to do a Bullish reversal due to multiple coincident sources of support:
- .618 Fibonacci at 141.32
- Gap fill at 142.01
- 200sma 141.32
- All the above are with oversold Stochastics
So I got a December 17th 145/150 Call Spread for $0.95. Assuming full value at exit, the vertical option spread will worth close to $5.
So the Risk:Reward is about 5/.95 = R:R = 1:5, which is fantastic.
I expect to add more spreads when the price action shows the reversal has begun.
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