August 19, 2020
Throwing DARTS.
Bullseye is probably an understatement when talking about Target’s latest earnings report. With a tripling of online sales, net sales up over $3 billion, and more than a doubled EPS, it might be more appropriate to say that the retailer split the arrow.
Following the news, shares of the company (NYSE: TGT) have traded up as much as 13%. Prior to the jump, shares had only been trading up 6% YTD… that seems like a mere pittance compared to the upside potential that was just revealed.
Keep the Records Rolling
After a record day for the S&P 500 yesterday, we walked into another one for the books today. Peaking out at $3,398.92 and $SPY at $339.61, the broad market hit another all time high today.
Now that we’ve broken resistance, it looks like it’s time to keep running….
…until it’s not. Don’t let all of this green make you forget that it’s still always possible to see some more red.
Apple under fire
The tech giant, and largest company in the world, is under fire this week after the creator of Fortnite, Epic Games, announced that Fortnite would be removed from from its App Store.
The gaming giant, who has generated more than $4B in revenue in the past 2 years, aims to be the first company to publicly stand up to Apple and Google for their “tax” of more than 30% on all in app purchases.
Why Buy In The Money Calls?
While it can be significantly more expensive to purchase deeper in the money (ITM) calls, doing so will have you paying less for the extrinsic value of the option and provide movement that is closer to mirroring the movement of the stock dollar for dollar.
While Out of the Money (OTM) calls will be cheaper, 100% of their value is based on the anticipation that shares will rise in the future. Even though they cost more, ITM calls can actually represent a more conservative play than OTM calls.
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