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!
Assigned Shares of Target (TGT)
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?
I like the long history of being shareholder friendly. Buying an index is a fine strategy too.