Walmart Is 77% Overvalued and the Cracks Are Showing

Don here...

Walmart trades at a 45 PE ratio. Its earnings grow at 2.5% a year. Its net margin is 3.26%. Brandon Chapman pulled up the numbers this morning and called it the new AI stock. He was not being kind.

Price to book is 10.82 against a historical median of 4.82. Price to sales tells the same story. By almost every measure, Walmart is 75% overvalued.

Today, it started cracking.

In today's free session replay, you'll discover:

Why the defensive rotation trade is running out of room. Traders piled into staples and utilities as a safety play. Brandon showed that Walmart's valuation has no historical precedent. Investors sold it today and rotated into financials and industrials.
The volatility trap that's punishing every directional trader. The S&P is stuck in a 3% range while the VIX prices in a 5-10% correction. Options cost more, but the market moves less. Brandon compared it to pre-Lehman 2008, when the VIX seemed high but was actually low relative to what came next.
Why junk bonds are diverging from the rest of the credit market. Treasuries rallied. Investment grade rallied. High yield did not. Brandon flagged widening risk spreads in HYG as a warning that credit stress is building beneath the surface.
The invisible wall of institutional put buying building in the market. Someone bought $2.8 million in Google puts. Another institution loaded 20,000 contracts on VFC. QQQ saw 19,000 put contracts in a single trade. Brandon tracked it all through the Ghost Prints console and explained why it creates downside gravity once the range breaks.

The market looks calm on the surface. A 3% range does not feel dangerous. But the options market is telling a different story. Institutions are positioning for downside and the accumulated gamma is sitting there like a loaded spring.

Brandon has been watching this pattern build for weeks. Eventually the range breaks. When it does, the selling pressure from all that put activity compounds on itself.

→ Watch Brandon explain why the market's calm surface hides a dangerous gamma buildup and how overvalued defensive stocks are about to crack

To your success,

Don Kaufman
Chief Market Strategist, TheoTRADE

PS: Brandon tracked $2.8 million in Google puts. 20,000 contracts on VFC. 19,000 put contracts on QQQ in a single trade. That is not noise. That is institutional positioning you cannot see on a chart. The Ghost Prints console catches this order flow before it shows up in price. When the range finally breaks, all that gamma unwinds at once.

👉 Join Brandon tomorrow at 2PM EST and see what he is tracking live. SAVE YOUR SPOT

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