Why TJX's Upswing is Too Good to Pass Up

The stock could be ripe for some bullish analyst attention

Oct 25, 2022 at 11:10 AM

The shares of TJX Companies Inc (NYSE:TJX) broke out of a downtrend from August through October, and are currently above all daily and weekly trendlines. Furthermore, the stock is higher than the $64.50-$63.50 pivot that tends to produce volatile moves with moving averages trending higher that had previously been flat. Now, with TJX on an upswing after bouncing off its year-over-year breakeven level this week, it looks like a good time to weigh in with calls.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TJX’s 50-day put/call volume ratio recently peaked above 1.25 and has been unwinding since. Past peaks such as this have set up multi-month runs.

Despite the bullish tilt, analysts haven’t been more bearish in the past few years. Of the 25 analysts in coverage, six carry a tepid “hold” rating on TJX. Our recommended call option has a leverage ratio of 6 and will double in value on a 16.2% pop in the underlying shares.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this TJX commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

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