Target Stock Soars to Record Highs After Stellar Earnings Report

The equity is up 76% year-over-year

Deputy Editor
Aug 19, 2020 at 10:28 AM
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The shares of Target Corporation (NYSE: TGT) are surging this morning, last seen 11.2% higher, earlier hitting a new record high of $152.77, after the retail giant released a monster earnings report. More specifically, TGT chimed in with earnings of $3.38, substantially higher than the consensus estimate of $1.62, while revenue also handily beat Wall Street's forecasts. Elsewhere, comparable-store sales rose a staggering 24.3%, and digital sales nearly tripled from the prior year. 

Two days ago, TGT hit a fresh high of $138.69, a far-cry away from their April 3, 2020 low of $90.17. Though the stock pulled back slightly during yesterday's session, it still finished the day with solid support from its $135 level. When pairing all of this with today's rise, it's no surprise that TGT boasts a staggering 76% lead year-over-year.  

Much like the last time we checked in on TGT, the option pits are full of bullish activity. Target stock sports a 10-day call/put volume ratio of 3.33 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 90th percentile of its annual range. This suggests there is still a healthier-than-usual appetite for bullish bets of late.

Today's options pits are also exploding with more of the same. In just the first hour of trading, 118,000 calls and 27,000 puts have crossed the tape -- 21 times the intraday average and volume pacing in the 100th percentile of readings from the past 12 months. The most popular option is the August 155-strike call, followed by the 150-strike call from the same series, with new positions are being opened at both.

Lastly, Target stock sports a Schaeffer’s Volatility Index (SVI) of 32%, which sits in the 18th percentile of its annual range. This suggests options have been pricing in relatively low volatility expectations right now. 


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