Cashing in on Target

The U.S. economy is strong, inflation worries seem to be dissipating and the S&P 500 just hit a new all-time high.

It’s a great time to be trading bullish options.

We’re thrilled with how our Strategic Trader portfolio is performing, and we’re looking to add to the successes with a new trade on Target (NYSE:TGT).

TGT continues to benefit from falling unemployment and the stimulus money the Federal government has been sending out.

All of this new cash in consumers’ pockets has given them the ability to go shopping again.

We’ve been waiting a while now for the stock to give us some new support levels and pullbacks to work with, and we’ve finally got some.

TGT consolidated above $225 for the better part of two weeks at the end of May.

Then, after jumping higher at the start of last week, the stock pulled back on Wednesday and Thursday, giving us an entry point.

To take advantage of this opportunity, we recommend selling to open a new put write on the stock.

We recommend setting a strike price for this trade that lines up with the support level created by TGT’s latest consolidation range.

And we prefer a mid-July expiration date, which will give us some solid option income and give the trade plenty of time to play out.

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.

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