Buy Call TJX

March 12, 2024
Sell TJX April 92.5/105 Bull Call Spread

In terms of TJX, time is becoming too much of an issue, and the stock is hardly moving; for those reasons, I am going to sell and move this capital to better ideas.

To execute this trade you need to:
Sell to Close the TJX April 92.5 Calls
Buy to Close the TJX April 105 Calls

February 26, 2024
Adjust Existing Position: Against TJX April 92.5 Calls, Sell the April 105 Calls for $1 or more.

TJX will report earnings on Wednesday before the market open. Ahead of that event let’s sell an out-of-the-money call to lower our risk/cost basis.

To execute this trade you need to:
Sell to Open the TJX April 105 Call

After this sale, our position will now be:
Long TJX April 92.5 Call
Short TJX April 105 Call

This will drop our cost basis on our trade to $5.50 (approximately).

Please note, even though we are selling an out-of-the-money call, there is no question we want TJX stock higher.

Finally, by selling this 105 strike call I am limiting our upside past the 105/106 level. And while this sale may be a mistake if TJX explodes higher on earnings, we could live with the stock trading at 105 or above as our bull call spread would be worth $12.50, or a profit of more than 100%.

February 7, 2024
Sell a Third of your TJX (TJX) April 92.5 Calls for $7.40 or more.

TJX (TJX) stock is trading at a new high today, and looks great. Essentially it is doing nothing wrong. However …

There are definitely some worries under the surface of the market as the Regional Banks (KRE) are under pressure again, and put buying is really picking up in that group.

For that reason, let’s take a couple chips off the table, and lock in a modest profit of approximately 15% on a third of our TJX calls.

To execute this trade you need to:
Sell to Close a Third of your TJX April 92.5 Calls

August 29, 2023
Buy the TJX (TJX) April 92.5 Calls (exp. 4/19/2024) for $7.25 or less.

After a couple weeks of nasty selling, the market is showing some signs of life today. And while the three weeks of selling weren’t particularly fun, there was some upside to the weakness as it was easy to spot the strongest stocks in a bad market. This brings me to TJX (TJX).

Retail stocks were mostly obliterated during earnings season as countless leaders from that group came under immense pressure. However, the one stock that was steady throughout, and actually gained ground during earnings season was TJX, which rallied from 86 to 89 on a big earnings beat and a positive conference call and is pushing out to a new high today. This stock strength has been impressive, and so has the option activity, including these trades in the last two weeks:

Today - Buyer of 1,000 TJX September 91 Calls for $1.25 – Stock at 91

Today - Seller of 1,000 TJX January 82.5 Puts for $1.41 – Stock at 91

8/24 – Buyer of 1,500 TJX June 95 Calls for $6.05 – Stock at 89

8/21 – Buyer of 1,500 TJX January 90 Calls for $4.90 – Stock at 88.7

While the option activity is not “overwhelming” the combination of this positioning, the stock strength and the market potentially getting back in gear is an intriguing situation that I want to get involved with.

To execute this trade you need to:
Buy to Open the TJX April 92.5 Call

The most you can lose on this trade is the premium paid, or $725 per call purchased.

The risks I see in this trade are largely market-related, and it’s certainly possible that the indexes could fall yet again.

That being said, I really like the TJX stock strength in recent months, and to pay $7.25 for a call with eight months until expiration is a great risk/reward.

Finally, here are the updated price targets for TJX shares following the big earnings beat two weeks ago:

Loop Capital - $100 price target
Telsey Advisory - $100 price target
Jefferies - $110 price target
Morgan Stanley - $99 price target
Citi - $103 price target
Bank of America - $102 price target
Barclays - $101 price target