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January 28, 2013  Mon 9:58 AM CT

TGT: SEE CHART GET CHAIN FIND STRATEGIES
A trader is betting on a floor beneath shares of Target before the retailer releases key numbers in coming weeks.

A block of 3,009 TGT March 60 puts was sold for $1.24 this morning, according to optionMONSTER's tracking systems. The volume was well above the strike's open interest of 576 contracts at the start of the day, indicating that this is a new position.

TGT is down 0.97 percent to $60.94 in morning trading. The retailer had been falling from the $62.50 level reached in mid-November but bounced at $59 at the beginning of the year. It has since risen above its 200- and 50-day moving averages and is now approaching the 100-day line.

Today's put seller is looking for the stock to stay above $60 through mid-March. If shares are below that strike price, the trader faces the obligation to buy shares at an effective price of $58.76 when the credit from the put sale is factored in. (See our Education section)

The company is scheduled to release January sales numbers on Feb. 7 and fourth-quarter results on Feb. 27.

Total option volume is above 8,300 contracts, already more than double its full-session open interest in the last month.
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Education & Strategy

The Strike-Based Greeks

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