This week is off to a great start. The S&P 500 has reached more new all-time highs as Congress gets closer to what Wall Street hopes will be a strong coronavirus stimulus package.

And one company that would certainly be a major beneficiary of any new stimulus payments Congress authorizes is Target (NYSE:TGT).

After all, many consumers are likely to spend at least a portion of the money they receive at TGT.

We’re seeing this bullish fundamental sentiment confirmed on the stock chart.

TGT dropped down to successfully re-test support at $178 in late January.

This support bounce — coupled with Monday’s break higher — confirms the stock is still in a long-term uptrend and is likely to remain so in the run up to the company’s earnings announcement on March 2, before market open.

Daily Chart of Target (TGT) – Chart Source: TradingView

To take advantage of this move, we recommend selling to open a new put write to generate some option income.

We’d set a strike price that lines up with the short-term support level the stock hit on January 20 and then bounced off again last week.

And we’d opt for an early March expiration because it comes after the company’s earnings announcement, which gives us a premium boost.

That said, we expect to take profits off the table before TGT releases earnings.

On the date of publication, John Jagerson & Wade Hansen did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

John Jagerson & Wade Hansen are just two guys with a passion for helping investors gain confidence — and make bigger profits with options. In just 15 months, John & Wade achieved an amazing feat: 100 straight winners — making money on every single trade. If that sounds like a good strategy, go here to find out how they did it.