Walmart

Walmart(WMT) is down about 4% after their earnings this morning. Still not quite a screaming value at $60/share, but I am going to take advantage to sell a put.

• Sell to Open: 1 WMT Jan 19 2013 55.0 Put @ $2.50

This will work out to 25% in just under a year. Worse case scenario, I buy WMT at $52.50 and collect dividends and sell covered calls on a rock solid company.

The Numbers

• Cash: +$250
• Short Option: -$255
• Margin: -$1000