Traders have already made a killing in Target, and now they’re coming back for more.
Barely one week ago, optionMONSTER’s Heat Seeker monitoring program detected buying in the short-term Weekly 63 calls expiring next Friday, Sept. 26. They initially paid just $0.30, but the stock moved and our customers had doubled their money the following afternoon.
TGT continued to push higher, driving those 63s up to $1.50 this morning–a profit of about 400 percent. It works because long calls lock the price where a stock can be bought, letting investors benefit from a rally without the significant capital risk of owning shares. If it goes the wrong way, they lose only the initial premium paid for the options.
— Option Monster