Consumer Cyclical
TGT
Target Corporation
Value income from Target (TGT) with covered calls and cash secured puts. Beaten-down retailer with strong dividend.
Monthly Premium2.0-3.5%
Annualized Return24-42%
Stock Price$130-155
IV RankModerate-High (40-60)
Options LiquidityVery Good
Dividend Yield2.8%
Why TGT for Covered Calls & Cash Secured Puts?
TGT offers elevated premium as a value retail play. Strong dividend yield with turnaround potential. Accessible price point.
Example Covered Call Trade
TGTCovered Call
Strike Price$155 (10% OTM)
Expiration30 days
Premium$3.50 per share
Return If Flat2.5% ($350)
Return If Called12.3% ($1,730) + dividend
Keep Probability68% keep shares
Recommended Strategy for TGT
Value-oriented wheel strategy. Sell calls 8-12% OTM while collecting the dividend.
Risks to Consider
- Consumer spending weakness
- Walmart/Amazon competition
- Inventory challenges
- Shrinkage issues
Analyze TGT Covered Calls Now
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