Target (TGT) – Digital Strategy Pays Off – May 18th, 2020
Bullish – TGT – $120.94
The S&P 500 (SPY) took a tumble on Thursday but managed a graceful recovery back to its major equilibrium level of $285 by Friday’s close. With the Fed continuing to support the markets and traders betting that US Treasuries will yield negative interest rates by April 2021, markets have remained resilient in the face of poor economic and corporate profits.
TGT Trade Idea:
On CNBC’s OptionsAction show on Friday, Tony Zhang looked at the retail landscape and potential winners. With a recent breakout above $118, TGT has strong relative strength and support going into earnings next week. Expecting TGT to continue higher, Tony suggests selling a May 29 $121/114 Put Credit Spread @ $2.78 Credit. As of Friday’s close, this spread was trading at a $2.88 Credit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: TGT Options Action