Target (TGT) adds $1.54 to $54.51 on better-than-expected earnings and trading in the options on the retailer is brisk today. 37,000 calls and 10,000 puts traded in TGT so far. The top trade is a Mar 55 – April 57.5 call spread, sold at 23 cents, 5000X, and possibly rolls a bullish position out one month and up in strike prices. Separately, 2200 Mar 55 calls traded on Target for 67 cents when the market was 65 to 67 cents. A third noteworthy trade is a Mar 52.5 – 55 call spread, sold at $1.32, 1400X on ISE. It’s a roll up in strike prices, according to data from ISE. Overall, the flow seems somewhat bullish, as some investors appear to be targeting additional gains for the stock in the weeks ahead. Meanwhile, levels of implied volatility in TGT options have plummeted 25 percent to 16.7 and are testing the 52-week low of 16.7 set on 12/23.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.