TarGeT practice

“The race is not to the swift, nor a battle to the strong..”  I heard that quote back in high school (like 95 years ago).  The teacher that told the class that quote was known for being drunk.  He finished the quote by saying “.. but that’s the way to bet.”

I’m going to bet that a majority of the money on Wall Street is smarter than a minority of it.  In doing so, I’m also following my idea that the retail market is going to be saddened in January.  So here’s my latest put buy.

Buy:
TGT Jan08 $50 put (TGTMJ), 2 @ $1.80
   stock price when entered $52.36

TGT (Target Corportation) is a stock that has been much higher within the last year than it is now.  Like SHLD or JCP, if you only gauged future price on a 52-week history, you would think that these stocks are at buying opportunities because they are much, much closer to their 52-week low than they are to their high.  My guess is that there is more room for disappointment still and the stocks will slowly be taken downward until there is a point in the future that people can look back and say “that slump is over” or “thankfully we made it past a recession”.

So here’s to the big bullseye being a target for lower prices.

Oh ya, WMT is another potential put position in my mind, but since so many of their customers are already broke, there’s little likelihood they feel much strain from their current position.