QuoteMedia Inc (QMCI)

[reaper247]

Using QMCI options data tonight to examine TGT earnings as a potential options trade.


TGT closed @ $72.94.

TGT earnings to be announced 3/5/2019.

The TGT contract expirations of 3/8/2019 are interesting.


The $72 calls closed @ $2.93 with 466 in volume.

The $73 puts closed @ $2.37 with 2,383 in volume.

Even for someone who doesn’t play contracts, it is interesting to note that advanced traders seem to be betting on a TGT decline when earnings are announced, based on contract volume (as of now.)

TGT could be an interesting strangle ahead of earnings.

1 call contract with 3/8/2019 expirations and $72 strikes would cost roughly $300.

1 put contract with 3/8/2019 expirations and $73 strikes would cost roughly $250.

It’s a good way to bet both ways on a potential PPS movement for TGT.

For roughly $550, a trader can bet both ways on a TGT earnings outcome, ahead of expirations later in the week.

A modest rise or fall of the underlying stock could easily send contracts higher, yielding gains that are big enough to offset losses on the other side of the trade.

The danger would be a sideways PPS that results in losses on both sides of the trade.

Worst case scenario is a $550 loss, while at the same time, potentially benefitting from large gains either way the PPS moves.

Best of all, it avoids the potentially devastating downside of a physical stock short that would have to be covered.

FWIW, I am not playing TGT. I am not recommending it. Just using it as an example.

IMO and FWIW.