Call Options on TGT on 12/9/2019

Target Corporation (TGT) operates as a general merchandise retailer in the United States.

The company offers beauty and household essentials; food assortments, including perishables, dry grocery, dairy, and frozen items; and apparel, accessories, home décor products, electronics, toys, seasonal offerings, and other merchandise. The company also provides in-store amenities, such as Target Café, Target Optical, Starbucks, and other food service offerings. 

Shares have formed a bullish "flag" following the company's latest quarterly report. Target (TGT) reported 2nd Quarter July 2019 earnings of $1.82 per share on revenue of $18.4 billion. The consensus earnings estimate was $1.61 per share on revenue of $18.3 billion.  Revenue grew 3.6% on a year-over-year basis.

The company said it expects third quarter earnings of $1.04 to $1.24 per share and now expects fiscal year earnings of $5.90 to $6.20 per share. The company's previous guidance was for fiscal year earnings of $5.75 to $6.05 per share. The current consensus earnings estimate is $1.17 per share for the quarter ending October 31, 2019 and $5.92 per share for the year ending January 31, 2020. Higher share prices are expected for this stock.

We will be trading December 27th Call Options

Last Trade: $125.03

Trading Range: $60.15 to $127.97

Trade Buy 1 December $125.00 Call at $2.20 For a net debit of $2.20 Profit/Loss Analysis Breakeven at $127.20 Maximum profit is unbounded Maximum loss is ($220.00) at strike of $125.00 Closing Summary Sold 1 December $125.00 Call at $3.00

Position closed on 1/2/2020 at price of $3.00 with a 36.36% gain in 24 days.

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