How to Trade Walmart Ahead of Earnings

Dan Deming from KKM Financial discusses market trends post-election, highlighting gains in major averages despite daily selling pressure. He attributes this to factors like global growth concerns and commodity market issues. The discussion shifts to the Federal Reserve's impact on market volatility, noting the absence of the Fed put and the normalization of interest rates. The VIX is expected to stabilize between 15 and 20. The conversation concludes with an analysis of Walmart's upcoming earnings report and a trading strategy involving a call spread to capitalize on elevated premiums.

What was one of the main factors contributing to the market's selling pressure despite gains in major averages?

• A crash in crude oil prices

• A surge in technology stocks

• A decrease in unemployment rates

• A sudden increase in interest rates

What significant change in the Federal Reserve's approach is affecting market volatility?

• Implementation of a new stimulus package

• Introduction of new interest rate cuts

• Increase in quantitative easing measures

• Absence of the Fed put

What is the expected range for the VIX as the market adjusts to the new conditions?

• 5 to 10

• 10 to 15

• 15 to 20

• 20 to 25

What trading strategy is being considered for Walmart in anticipation of its earnings report?

• Investing in index funds

• Selling short

• Buying put options

• Using a call calendar spread

Why might Walmart's strong performance have a bearish implication for the broader market?

• It reflects a decrease in market liquidity

• It suggests a shift towards defensive stocks

• It indicates a potential market bubble

• It shows a decline in consumer spending