UncleBeeB
Long

Earnings Play for TGT

NYSE:TGT   TARGET CORP
I grabbed in the money options before the breakout. weekly close above 123 confirms move. Target $132. In the money options help against theta decay but cost more up front. This is an earnings play. options that expire August 21 or 28 have lowest theta. Risk/Reward is 3.00 stop loss is low 119's. So long as weekly close is above 123, the 119 stop loss is reasonable. if this falls back into the wedge you can add another call around 116 and set a different stop loss, but the safer play is playing the breakout with confirmation. there were 2 hourly candles that close above the resistance along with strong bull volume on the last 2 hour candle.
Comment: sorry. If this falls into wedge use the black dotted line for another call entry. the line is at "118.25"
Comment: we've broken out above the wedge and are nearing the target price pretty quickly. above 132 the next area i expect is 135. this may hit big post earnings, but i'll exit almost all positions if this continues rallying into earnings and does have atleast 4 days of consolidation prior to earnings report.
Comment: We've hit 134. I exited two of my calls at 133.25 range, theta decay is gonna start picking up. 135 is on the table, I tried to project a reasonable rally target if momentum increases it looks to be a price of about 144. I don't recommend holding past earnings unless you risk a small amount of capital for an upside high target like 144 for as late as mid september

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