The automated Quantcha Trade Ideas Service has detected a promising
TGT was recently trading at $53.48 and has an implied volatility of 19.18% for this period. Based on an analysis of the options available for TGT expiring on 20-Oct-2017, there is a 27.35% likelihood that the underlying will close within the analyzed range of $57.09-$69.78 at expiration. In this scenario, the average linear return for the trade would be 211.18%.
Price target: Zacks Research has updated their six-month price target for TGT to $63.44. This price target is a consensus price created from the price targets published by 16 participating analysts whose targets ranged from $50.00 to $77.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for TGT has been updated to 2.85, which indicates a hold consensus from analysts. Sentiment has moved from 2.55 to 2.58 to 2.52 over the past three months.
Trade approach: The difference between the current price for TGT and the mean price target is $10.52, which represents a 18.62% move (41.37% annualized). Since the 180-day implied volatility for TGT is 22.07%, a bullish strategy could prove effective if the price target ultimately turns out to be accurate.
Upside potential: Using this bullish strategy, the trade would be profitable if TARGET closed at or above $57.04 on 20-Oct-2017. Based on our analysis, there is a 32.73% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
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This is an automated post generated based on a market analysis of delayed data at 3/28/2017 2:19:42 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.