Walmart (NASDAQ: WMT) is scheduled to report earnings on 20 August 2026. The shares recently traded at $115.27, and the upcoming earnings announcement may bring increased volatility as investors react to the company's financial results and outlook.
Analyst expectations ahead of the report point to earnings per share of approximately $0.74 and revenue of roughly $186.7 billion. Recent company communications have highlighted Walmart's continued focus on its omnichannel retail strategy and technology-enabled customer experience.
A cash-secured put is an options strategy in which you sell a put option while setting aside enough cash to purchase the shares if assignment occurs.
When you sell the put:
Some investors use cash-secured puts when they would like to own a company at a lower price and are willing to wait for that opportunity.
Suppose you'd be happy to buy Walmart shares, but only if they fell to a lower level than the current market price of $115.27.
You could sell a 21 August 2026 $110 put option and receive approximately $0.90 per share upfront, or $90 per contract (1 contract = 100 shares).
Key details:
To enter the trade, you would set aside $11,000 in cash (100 shares × $110 strike price).
Because you collected $90 in premium, your effective purchase price would be:
$110.00 - $0.90 = $109.10
This means your break-even level is $109.10 per share.
At option expiry | Share price | What happens | Result |
Above strike price | Above $110 | The put expires worthless and no shares are purchased. | You keep the $90 premium. Cash requirement was $11,000. |
Slightly below strike price | For example, $108 | Assignment occurs and you purchase 100 shares at $110. | Effective purchase price becomes $109.10 after the premium received. |
Significantly below strike price | For example, $95 | Assignment occurs and you purchase 100 shares at $110. | You still keep the $90 premium, but the share value is well below your $109.10 break-even, resulting in an unrealised loss. |
For Walmart, investors are paying close attention to several earnings-related themes, including consumer spending trends, competition in retail, e-commerce profitability, margin performance, and the company's ability to balance price leadership with profitability. Recent coverage has also focused on inventory management, growth in digital channels, and execution across domestic and international operations.
Specific risks of a cash-secured put include:
Investors should remember that selling a put is a bullish-to-neutral strategy and carries stock ownership risk if assignment occurs.
Some long-term investors use cash-secured puts because the strategy allows them to potentially:
That said, the strategy works best when you are genuinely comfortable owning the shares and can tolerate potential downside after assignment.
Strike Price
The price at which you may be required to buy the shares if assigned.
Premium
The amount received upfront for selling the option.
Assignment
The process through which the option seller is obligated to purchase shares at the strike price.
Expiry
The date on which the option contract expires.
Break-Even Price
The strike price minus the premium received. In this example: $109.10.
Cash-Secured
A strategy where sufficient cash is reserved to purchase the shares if assignment occurs.
Implied Volatility
A market-based measure of expected future price movement reflected in option prices.
Delta
An option sensitivity measure that indicates how much the option price may change relative to moves in the underlying share price.
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