Wal-Mart: Low-Risk Entry With LEAP Puts

Some trades are so obviously good that you can execute them with impunity. I could hardly wait for Thursday's opening after Wal-Mart (WMT) reported slightly disappointing fiscal first quarter numbers. The stock was certain to fall sharply once trading began.

WMT's balance sheet is beyond reproach. The shares are more stable than almost all other stocks. Actual profits may vary slightly with economic and weather conditions but the world's largest retailer always makes money and rarely misses estimates by more than few cents.Lots of media analysts were busy saying that Wal-Mart is now too big to grow. I heard that same refrain in the 1980s when revenues were half what they are today. A peek at the last decades per share numbers blows that theory right out the window....376 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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