Is Target set to miss the mark?
The retailer may not report earnings until Nov. 19. But on Monday, options traders were already making gobs of bearish bets on the stock, with many betting that Target shares will be 5 percent lower in four weeks' time.
Specifically, on a day when puts on Target traded some five times their average daily volume, the most popular trade was buying the November 59.50-strike puts for $0.90. Since a put gives its owner the right, but not the obligation, to sell a given stock at a given time, these puts will only make money if Target shares close below $58.60 on Friday, Nov. 21.
"It's common to see heavy options volume right before an earnings announcement," but given that earnings are still so far away, "maybe it's not just earnings that they're making a play on," Mike Khouw of Dash Financial commented Monday on CNBC's "Fast Money."