We’re not big fans of investing in retail stores since most of the things we buy are delivered through Amazon, Instacart or other delivery services but the bloodbath with Target has us thinking this may be a good buying opportunity.
Target recently announced it was hiring 100,000 employees for the holidays and perhaps that’s wishful thinking for a robust holiday season or perhaps they know something we don’t. Either way TGT has fallen to $117 today from a high of $176 back in January of 2023!
If we do trade Target, it will be through naked puts for November 2023 or January 2024 expiry at juicy premium strikes. We calculate we can make about 8% or more on this trade.
On the bond front, TLT is an ETF for the 20-Year Treasury that has come down from a high of $171 on July 2020 to $90.54 today and dropping. As the Fed continues to hike interest rates, bond prices drop and the 20 Year has been sluggish to move down (price-wise) until today when all the air was let out of the tires.
If we enter into a trade on TLT, it will be a small one and through naked puts as well to get in at an even lower price. We continue to be very cautious as October is famous for corrections and crashes so any moves we make will be small and fast. Stay tuned, stay profitable and stay solvent…