Investors in Target Corp (Ticker: TGT) can now access new options set to expire on August 21st, 2023. Notably, a put contract with an $85.00 strike price is currently listed at a bid of $0.50, offering a potential cost basis of $84.50 for shares, compared to the current trading price of $128.59. This strike price represents a 34% discount to the current price, with a 93% probability of the put expiring worthless.
Additionally, a call contract at the $130.00 strike price has a current bid of $7.80. If an investor employs a covered call strategy, they could see a total return of 7.16% if the stock is called away by expiration. This call strike represents a 1% premium to the current trading price, with a 48% chance of expiring worthless. The put’s implied volatility is 60%, while the call’s is at 37%.
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