This Huge Retailer Got A $1 Million Bet From A Trader

According to Mike Khouw of Optimize Advisors, a buyer put in 10,000 January 72.5-calls for $1.10 each of Walmart.

Since each call option accounts for 100 shares of stock, these calls equate to a $1.1 million bet that Wal-Mart shares will close at or above $73.60 by January expiration.

Wal-Mart reported Thursday before the market and topped Wall Street’s earnings expectations during the latest quarter. The retailer also lifted the lower end of its full-year guidance.

Despite all this, shares fell 2.7% in pre market trading as the company’s sales fell short of what analysts were looking for.

Wal-Mart earned 98 cents a share during the fiscal third quarter and had sales of $118.18 billion. Sales were a 0.7 percent increase over the prior-year period but below the Thomson Reuters forecast of $118.7 billion.

Disclaimer: We have no position in Wal-Mart Stores, Inc. (NYSE: WMT) and have not been compensated for this article.