The Blubber

Walmart reported Q2 Earnings on Tuesday, August 17th during Pre-Market, beating estimates for both Earnings Per Share (EPS) and Revenue. WMT reported a profit of $1.78 per share, beating the estimate of $1.57 by about 13%; and sales revenue of $141 billion, beating out the sales estimate of $1.57 per share--a roughly 2.85% beat.

This unusual options activity from August 16th, one day before earnings,(taken from the Unusual Whales Live Flow tool) paints a picture of bullish sentiment throughout the day, which the largest orders (Greater than $25,000 in premium) betting on WMT to rise, with a focus on 8/20/2021 Weeklies and 7/17/2021 Monthlies:

Following earnings, if you refer to today’s flow (August 17, 2021) on the Unusual Whales Flow Tool, the bullish sentiment has continued throughout the morning, with all larger orders (greater than $20,000 in premium) banking on a persevering uptrend, and smaller orders (less than $15,000) erring on the side of caution:

Sea Ltd (SE) also reported Q2 earnings during pre-market on August 17th, and experienced heavy options flow the day prior. However, unlike WMT, SE did not report Beats across the board. On the contrary, SE reported earnings per share of -$0.61 against the expected -$0.49 EPS, a major -24.25% miss. However, SE reported a surprising revenue beat of 13%, reporting $2.28B compared to the $2.08B in revenue expected.

As SE stock continues to rise throughout the day, it’s important to note why the dramatic rise continues (currently over $310.50, a nearly 7% increase, at the time of writing), and why Options Activity maintains a strong bullish sentiment for the months to come.The SE earnings release indicates an enormous increase in annual guidance for e-commerce and games, projecting a growth increase of 44.4%. The company also stated in the report, “We also expect GAAP revenue for e-commerce to be between US$4.7 billion and US$4.9 billion, representing 121.5% growth from 2020 at the midpoint of the revised guidance.

Taking a look at the Unusual Whales Flow Tool, it’s clear that options traders and investors are extremely pleased with this guidance. Options flow continues to be bullish throughout the day, with the majority of orders greater than $15,000 in premium reflecting positive sentiment to the company’s Q2 earnings release, with many orders focused on the $300 weekly call expiring on 8/20/2021, and out of the money calls for the later dated October expiration.