WalMart WMT hourly divergence December 8, 2021
We were watching several stocks towards the end of day on December 7, 2021. WMT was setting up a nice hourly divergence between the MACD and the price action. As prices bottomed in the morning of December 8, 2021, the turn up in the lower timeframes occurred around 13:00.
Given the strength of the divergence, and the slope of the MACD, we looked at WMT out-of-the-money 145 calls to expire on December 10, 2021. Acquiring them at 8c, the options went nowhere fast, and the downturn into the following morning, if you rode it out, came to fruition by the end of the expiration day with the price soaring to over $1.
There was also a reentry point on the same option around 10.30 eastern on December 9, 2021 with price at around 4c for the call.
Here's what the option looked like. all the action took place at the end of the day on the 10th.
The Options Hunter approach focuses on divergences between the MACD and the price action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable
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