WMT Hits New Record on OpenAI Deal, Analyzing Outperformance to Peers

Core Insights - Walmart's shares have risen nearly 5%, approaching all-time highs, following a partnership with Open AAI to enable shopping through Chat GPT with instant checkout [1][2] - The partnership is expected to enhance customer experience by allowing users to search for products and make purchases directly through Chat GPT [7] Company Performance - Walmart has outperformed its peers in the consumer staples sector, which is down approximately 3.8% this year [3] - Compared to other big box retailers, Walmart is leading, while competitors like Target have seen significant declines, with Target down 43% [4] - In the e-commerce space, Walmart is positioned as a typical player, while Alibaba stands out due to its AI chip developments [6] Technical Analysis - Walmart's stock has shown strong growth, with a notable ceiling around the $105 level, which has been tested multiple times [8] - The stock is currently above a supportive range of $99 to $100, indicating a positive trend [9][10] - Options activity for Walmart has been notably high, with 360,000 contracts traded and 74% being call options, indicating strong investor interest [12] Options Activity - A significant options trade was noted, involving 5,000 January 16th puts at an average debit of $191, suggesting a potential downside move of 11.5% to become profitable [14]