Dan Nathan spoke on CNBC's "Options Action" about Target Corporation TGT. He thinks the company is going to have a good year because it's going to be very active in acquisitions.
It's trading at a big discount to the market and to Wal-Mart Stores Inc WMT, added Nathan. He explained that the stock is trading at its technical support and he expects to see a rally in the third quarter. Nathan wants to sell the July 60 call for $0.55 and buy the October 60 call for $1.55. The options structure would cost him $1. If the stock trades below $60 at the July expiration and then rallies above $61, Nathan is going to make money on this trade.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.