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Assigned Shares of Target (TGT)

TGT was assigned to me on Friday.

music selection:  “Temptation” — Venom

weigh-in:  204.6 (2.2)

Target is showing sales growth.  This is largely driven by capex in omni-channel distribution.  They are positioning themselves to compete with Amazon and Wal-mart.  The market didn’t like the drag on the bottom line and punished shares.  As a result, I was assigned on Friday.

I’m keeping my position in Target and will write covered calls while I wait to collect the underlying dividend.  I sold TGT180427C00077000 for 49 cents a share.  The trade will be in force for 50 days and yields an expected 4.65% annualized.

Devour your prey raptors!

{ 2 comments… add one }
  • Chris B March 15, 2018, 1:34 pm

    To me this is too pro-cyclical, has too much company-specific risk, and doesn’t pay enough in option income to justify this vs. an index fund. Is there another rationale?

    • The Lizard King March 15, 2018, 2:08 pm

      I like the long history of being shareholder friendly. Buying an index is a fine strategy too.

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