Option update: Wal-Mart (WMT) volatility flat into holiday sales season

Posted Oct 2nd 2007 3:25PM by Paul Foster
Filed under: Management, Wal-Mart (WMT), Marriott Intl'A' (MAR), Options

Wal-Mart Stores Inc. (NYSE: WMT) is recently up .23 to $44.71. Bloomberg reported WMT considered spinning off Sam's Club, CEO McMillon says. WMT October option implied volatility is at 19, November is at 22; near its 26-week average of 23 according to Track Data.

Marriott (NYSE: MAR) is expected to report EPS of .30 cents on 10/4/07 according to Thomson First Call. BEST said on 10/1 "areas to focus on for MAR continue to be 1) development pipeline trends, 2) incentive management fee trends, 3) share buyback pace, and 4) any impact to timeshare given current tougher credit environment." MAR October option implied volatility of 35 is above its 26-week average of 29 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Tags: MAR, option implied volatility, OptionImpliedVolatility, Options, Sam Walton, Sam's Club,, Sam'sClub,, WMT