An unusual spread is looking for a sharp move in Target, which is not far from multi-year highs.
A trader bought 3,250 January 60 calls for $3.42 against open interest of 18,094, according to optionMONSTER's systems. At the exact same time, he or she sold 3,250 September 60 calls for the bid price of $1.95 with no open interest at that strike.
This activity is a bit odd, but it appears to be a short calendar spread, which would profit if TGT moves sharply in either direction. The risk lies in the time decay if shares remain around $60 as those nearer-term September options approach expiration. (See our Education section)
TGT is down 1.21 percent to $60.63 in afternoon trading. The retail giant has been trending higher since bouncing off support at $48 in the first days of 2012 and last month hit an intraday high of $62.18, its highest price since 2007.
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