Credit Option Spread on Walmart

A bull put credit spread on Walmart? I don’t know about that… You know that I like to follow Brent Archer and what his recommendations are, because he trades similar to what I do. Credit option spreads using out of the money options above or below strong support or resistance with gains around 5 to 15% per trade is my preference. Well he has a recommendation for a Bull put spread below the $40 range using January options. Here is his full commentary —>Wal-Mart (WMT) to grow Brazilian segmentHeres my comments on his trade as an armchair quarterback trader…LOL

 I like to follow your recommendations but on this one I think the reward is too low for the risk. Yeah WMT has to fall 12% but in this market with what I feel is going to be a very lack luster holiday season that could very well happen.Then again it could be my personal disdain of Walmart in general. Definitely not a store I like to visit, although their business practices are pretty shrewd to give the consumer the lowest price possible, I think their customer care… well… stinks and this will be their downfall. The beginning of the end and for a measly 4% with a two month hold on a company I do not like I will pass on this one.  

  Maybe the one time I am in disagreement with one of his trades. The first one I have noticed at least.

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