Update On Target (TGT)
Update On Target (TGT)
Hello Smart Option Sellers! Before I get to the alert, don't forget to read my new "Put-Selling Basics" guide that's on the website. It's a great refresher for both experienced and new traders. It's totally free. Just click here to read. Also, it seems many of you are not taking advantage of our phone text alert messaging system. If you'd like to be notified on your mobile phone when a new alert is about to hit your email inbox, join our text alert system by typing in your first and last name and mobile number here: Target Corp. (TGT) Well, there's no mistaking which way TGT is going to move this morning. Earnings were not what the market was looking for and the stock is down $8.70 per share as I type. Revenue, earnings per share, and forward guidance were all below analysts expectations. Add it all up and you can understand the big drop this morning. TGT stock is currently at $58.20 per share. There's good new and bad news. Good news is that if you got involved in the unofficial play I recommended yesterday to buy very cheap put options, then you are a happy camper. Some of you will be extremely happy based on the number of contracts you told me that you bought. It should be a profitable day. My recommendation is that you cash in on either most or all of the put options that you bought by selling them out this morning. I would think that the bottom feeders will come out and start buying the stock back up. This will cause the put options to drop back in price. So take some profits while you can as you don't want them to slip away. If you bought multiple contracts yesterday, maybe leave a couple in your account until Friday in case TGT stock slips a bit more. Remember though, these expire on this Friday, March 3rd. Unless you want to have 100 shares of shorted TGT stock in your account for each put option bought, then you need to sell the put options by the end of trading on Friday. The bad news (and it's really not that bad), is that the put-sell position we have (July '17 $45 puts) is going to be underwater today. That means we will be holding a temporary "paper loss" on it as it's trading above our official $.30 per contract entry price. This contract is now trading for about $.40 per contract, putting us $.10 per contract in the hole. But, the stock price is still a full $13.20 per share above our $45 strike price, giving us an over 20% cushion for more stock movement. Continue to hold that position as-is for now. $45 per share is a level that TGT has not seen since the end of 2009, and I feel confident that the company will be doing everything possible to get back on track and stem the fall. If you are a new member, and don't have a put-sell position yet on this put option, you can go ahead and do it today at current prices. Let's see how the day shakes out. I will send another update tomorrow if needed. That's all for now. If you bought the puts yesterday, let us know how you fared. You can reach us here. Regards, Lee Let's Grab That Cash!
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