We’re nearing the end of the month, and I’m sure most investors are ready to walk away from August without looking back.
Over the past 23 days, the Dow Jones Industrial Average has lost 2%. The S&P 500 and the Nasdaq aren’t far behind with their own 1.5% drops, either. It’s been a volatility storm, and the winds are coming in from every which way.
The trade war erupted, the yield curve inverted, and now fears of a global recession are plaguing the market, pulling it up and down out of fear.
But if the market’s cloud has a silver lining, it’s this – the U.S. consumer is strong.
That’s especially true when you look at customer-favorite Target Corp. (NYSE: TGT)’srecent earnings report. And that’s not tall. The retailer has a ground-breaking move up its sleeve, and it has the potential to swing the broader market even higher.
Keep Your Wallet Safe with Target’s Newest Brand
Target Corp. (NYSE: TGT) is the eighth-largest retailer in the United States. It’s also one of the most popular. I don’t think I’ve ever come out of the store with just one thing – I always go in for something like hand soap and come out with at least six bags of things I never knew I needed (and they rarely include the hand soap I came for in the first place).
I know I’m not the only one. And look out, because it doesn’t seem like that’s going to stop anytime soon.
On Monday, Target announced the launch of its newest flagship food brand, Good & Gather. The rollout will begin on September 15, and by the end of 2020, the line will have over 2,000 food products, making it the retailer’s biggest internal brand to date.
The products will range from classics like dairy and produce to trends like avocado toast, salad kids, and beet hummus. But regardless of the product, everything will be free of artificial flavors, synthetic colors, and high-fructose corn syrup.
With Good & Gather, Target is answering that call. It’s also helping the store step up its competition with Walmart Inc. (NYSE: WMT) and Amazon.com Inc. (NASDAQ: AMZN), two retail giants that Target has often fallen behind in the grocery business – but not anymore.
It might sound hard to believe, but Target didn’t used to sell food in its stores at all. Now, you can buy your full week of breakfast, lunch, and dinner there. Over the past ten years, the company has invested heavily in adding groceries to stores. It has completely made over in-store displays, strengthened its supply chain, improved product reliability, and even added same-day delivery.
And it’s paid off.
Target’s food and beverage business has posted company sales growth for seven straight quarters and market share growth for six. That’s growth across practically every category of food. And that was all before Wednesday’s earnings report.
Before the bell on August 21, Target released an earnings report that blew analyst expectations out of the water. It shot the stock up over 20% in response, and allowed the Dow to close 240 points higher even after the yield curve flashed another recession warning.
Now Target’s stock is up over 54% for the year compared to Walmart’s 20.5%. And it’s only going to get better.
Good & Gather will drive a whole new swarm of customers to Target looking for healthy food options – and if those customers are anything like me, they’ll find themselves filling their cart in the non-food aisles as well.
So, say you want to jump in on Target’s upward swing. I don’t blame you! But here’s the thing – right now, the stock costs around $106. For control of 100 shares, that’s $10,600.
I never spend more than $500 on a trade, so that’s way too much for me. But that doesn’t mean you have to sit out the lucrative potential here…
By buying a call option, you can control those same 100 shares of stock for a whole lot less.
Here’s an example…
On July 2, 2019, SL Green Realty Corp. (NYSE: SLG) was trading around $80.41. Control over 100 shares of SLG would have cost $8,041 – way over our $500 limit. Instead, my Alpha-9 Trader readers purchased an SLG call option for $2.30. For control over 100 shares, that’s $230 – a small fraction of the $8,000-plus for the stock.
Then, on July 18, SLG had risen to $82. On that measly 1.9% rise, my readers were able to sell their call options for a 100% gain.
In just a little over two weeks, we doubled our money. And it’s all thanks to options.
America’s #1 Pattern Trader