Weekend Trader Series
October 23, 2022
Open Positions Update
- Please extend the scheduled time-stop date on the Workday (WDAY) December 16, 2022, 160-strike put to Monday, November 7.
- Close the Allstate (ALL) January 20, 2023, 125-strike call on Monday, October 24. Close the position at a limit price within the range of the current market price when you place the order.
- Close the Hilton (HLT) January 20, 2023, 130-strike put on Monday, October 24. Close the position at a limit price within the range of the current market price when you place the order.
The following is this week's recommendation:
TJX Companies (TJX)Place a limit order to buy the TJX Companies (TJX) January 20, 2023 62.50-strike call at a limit price within range of the current market asked price when you place your order. At the close on Friday, October 21, this option was offered at $8.10. TJX closed at $67.61 on Friday, October 21.Do not attempt to enter this position after Monday's close.Please use the following guidelines to manage the position:
- Exit the position if the option is at a 100% gain from your entry price.
- If the option has not reached its target profit by 3:00 p.m. Eastern time on Monday, November 21, close the position.
- If there is a change to the above closeout parameters, we will notify you in your regular Sunday evening communication.
The shares of TJX Companies (TJX) broke out of a downtrend from August through October, and are currently above all daily and weekly trendlines. Furthermore, the stock is higher than the $64.50-$63.50 pivot that tends to produce volatile moves with moving averages trending higher that had previously been flat. Now, with TJX on an upwswing after bouncing off its year-over-year breakeven level this week, it looks like a good time to weigh in with calls.
At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TJX’s 50-day put/call volume ratio recently peaked above 1.25 and has been unwinding since. Past peaks such as this have set up multi-month runs.
Despite the bullish tilt, analysts haven’t been more bearish in the past few years. Of the 25 analysts in coverage, six carry a tepid “hold” rating on TJX. Our recommended January 2023 62.50-strike call has a leverage ratio of 6 and will double in value on a 16.2% pop in the underlying shares.
Most Recent Recommendations
The information contained herein is intended solely for the individual subscribers, is not intended for institutional investment organizations, and is not legal to be rebroadcast. Please click here for full disclaimer details.
Limitation on Schaeffer's Investment Research (SIR) liability: SIR liability, whether in contract, tort, negligence, or otherwise, shall be limited in the aggregate to direct and actual damages not to exceed the fees received by SIR from Subscriber. SIR will not be liable for consequential, incidental, punitive, special, exemplary or indirect damages resulting directly or indirectly from the use of or reliance upon any material provided by SIR. Without limitation, SIR shall not be responsible or liable for any loss or damages related to, either directly or indirectly, (1) any decline in market value or loss of any investment; (2) a subscriber's inability to use or any delay in accessing SIR website or any other source of material provided by SIR; (3) any absence of material on SIR website; (4) SIR failure to deliver or delay in delivering any material or (5) any kind of error in transmission of material. SIR and Subscriber acknowledge that, without limitation, the above-enumerated conditions cannot be the probable result of any breach of any agreement between SIR and Subscriber.