The TGT May 150 put is quite popular today
Just like sector peer Walmart (WMT), retail stock Target Corp (NYSE:TGT) is taking a nosedive this morning, down 24.1% to trade at $163.45 at last check, after the company's first-quarter report. The results themselves were mixed, with earnings of $2.19 missing estimates of $3.07, while revenue of $25.17 billion beat the anticipated $24.49 billion. However, the retailer announced that profits were cut in half this quarter amid high costs and supply chain issues. CEO Brian Cornell stated "we were less profitable than we expected to be or intend to be over time."
Target stock was already on its way lower ahead of the earnings event. Now, TGT is trading at its lowest levels since November 2020, and headed for its worst day ever on record. Year-to-date, the shares were contending with their breakeven level prior to today's collapse.
Options bears are sharp-sighted this morning, with 133,000 puts exchanged so far -- 46 times the intraday average -- compared to 55,000 calls. The May 150 put is the most popular by far, followed by the 160 put in the same monthly series, with new positions being opened at both. It's also worth noting that TGT has landed on the short sale restricted (SSR) list today amid the volatile price action.