Target Goes Against the Grain, Moves Higher After Quarterly Report

Puts have been popular among the retailer's options traders

Managing Editor
May 22, 2019 at 9:44 AM
facebook twitter linkedin

Despite the retail sector seeing earnings-related weakness this week, shares of Target Corporation (NYSE:TGT) have already gapped 7% higher, to trade at $76.68. Target this morning reported a first-quarter earnings and same-store sales beat, citing same-day fulfillment services for its digital strength especially. The company also shared plans to remodel 300 stores by the end of 2019. 

On the charts TGT has pulled back in recent weeks, but just yesterday inched its way higher and managed to close within a chip-shot of its 120-day moving average. Following today's surge, Target stock will be back in positive territory on a year-over-year basis, though puts are continuing to fly off the shelves.

While analysts have yet to respond to today's impressive beat, those covering the retailer held a bearish consensus coming into today. Specifically, 12 of 20 brokerages sport "hold" recommendations, though not a single "sell" in on the books, while the average 12-month price target stands up at $85.33.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners