Sell Target Calls for One-Month 43% Gain

By Linda McDonough • December 18, 2017

Sell to close the January 19, 2018 call on Target (NYSE: TGT) with a strike price of $62.5 at $3.00 or higher for a 43% gain. Symbol (TGT180119C62.5)

Retail stocks are riding the wave of Santa’s sleigh. Sell the last of the calls from my mid-November recommendation for a 43% gain.

I like Target’s positioning, but know how fickle retail stocks can be. These calls expire mid-January so the time value will shrink quickly, especially if the stock drops below the $62.50 strike price.

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Mark F

12/18/17 ‐ 10:00am ET December 18, 2017 at 10:00am ET

Linda,
Filled TGT call @ 3.15 for 52% gain. Another great pick. Thanks.

Roger Dehring

12/18/17 ‐ 11:40am ET December 18, 2017 at 11:40am ET

Thanks for this trade, Linda,

I closed my position in TGT when I hit my internal targets a couple weeks ago.

Have a great day!

LF

12/20/17 ‐ 12:40pm ET December 20, 2017 at 12:40pm ET

I read this late and I don’t do naked calls. How about a vertical spread 64/64.5 call for .15 debit?

Derek: Las Vegas, NV

12/20/17 ‐ 2:41pm ET December 20, 2017 at 2:41pm ET

This alert is not selling a call, it’s to close our initial position. This is not a viable new trade.

If you read the alert you will see that it says sell to close, not sell to open…

Derek

Derek: Las Vegas, NV

12/20/17 ‐ 2:43pm ET December 20, 2017 at 2:43pm ET

One more thing, you could sign up for text alerts so that you don’t miss any new alerts.

Derek

Linda McDonough

12/20/17 ‐ 3:59pm ET December 20, 2017 at 3:59pm ET

LF,
Derek is correct. This alert was to sell a long call position. To date, I have not sold any calls or puts naked. My options strategy is really an extension of the fundamental work that I do on basic stocks and not really an arbitrage play on options pricing.
Please let me know if you have any other questions.
Best,
Linda

MODERATOR: Lisa G

12/21/17 ‐ 3:54pm ET December 21, 2017 at 3:54pm ET

Sold my TGT calls for $3. Not today, just getting around to posting!

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About The Author

Linda McDonough

Bio | Archive

Linda McDonough is a veteran hedge fund analyst who loves to break down company financial statements and identify market inefficiencies to uncover big opportunities. She believes in a boots-on-the-ground approach that includes surveying customers, interviewing company executives, or doing whatever it takes to see what others don't.

She's now brought her experience as a hedge fund analyst to subscribers of her Profit Catalyst Alert service. Her system identifies small- and mid-cap stocks that are about to move due to catalytic events that few others can identify...until it's too late. These events often times result in massive gains for her followers.