Walmart Stock – Combining Strategies To Profit In A Boring Stock

Walmart Stock is in two of my portfolios. Walmart Stock symbol is WMT. In 2006 I added it to my retirement portfolio and in 2011 it joined my Put Selling on-line portfolio. During the bear market of 2008 to 2009 the stock actually held up quite well, falling about 26% from its 2008 high into February of 2009. The collapse was far less than the rest of the market and certainly a lot less than many stocks.

But for a lot of investors Walmart Stock is too boring. There is not a lot about Walmart Stock that gets the pulse rate up for traders. For years the stock can plod along basically going nowhere. Indeed from the fall of 2008 to the fall of 2011 Walmart Stock did not do much as it stayed in a narrow trading range.

Walmart Stock 5 Year Trading Range

This tight trading range was fairly good for Put Selling but with a plodding stock cames low volatility which made put premiums not very attractive. Recently Walmart Stock has had a very nice run-up but there are signs this may have ended and Walmart stock may be about to pull back and set up a new trading range.

Walmart Stock 5 Year Trading Range

Walmart Stock 5 Year Trading Range

Walmart Stock Low Volatility Is Needed

This low volatility is exactly what my trading strategies have enjoyed. This boring, plodding stock has earned me double-digit returns through combining the strategies of Covered Calls, Put Selling and my Bollinger Band Strategy Trade. This year, Walmart Stock has returned over 30% in my portfolio through combining these strategies. Since starting in my retirement account in 2006 the capital allocated to Walmart Stock has more than doubled without the use of Put Selling which is not allowed by law in Canadian retirement accounts. I can imagine the results if I could have added in Put Selling with the other two strategies.

It is the low volatility which actually complements the strategies being combined and makes this kind of return possible.

Delving Deeper Into Trading Strategies On Walmart Stock

For investors who want to delve deeper into these three strategies there are some key aspects that need to be studied and understood before considering whether to combine these three strategies for trading in Walmart Stock.

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