Walmart looks to benefit from weak oil prices

New York

AS falling petrol prices and a growing job market afford consumers more spending cash heading into the holidays, investors are positioning for retailers like Walmart Stores Inc to reap the benefits. Demand for options that protect against future losses in Walmart shares fell to the lowest level in more than five years relative to bullish ones, data compiled by Bloomberg show. Ownership of put options conveying the right to sell an exchange-traded fund tracking retail stocks has fallen to the lowest since May compared with calls giving the right to buy.

Investors are anticipating that the lowest crude oil prices in four years and the highest consumer confidence since 2007 will boost holiday sales for chain stores. With its focus on shoppers in lower income brackets, Walmart is particularly well-positioned to thrive this holiday season, according to Walter Todd of Greenwood Capital Associates LLC.