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Is Target a Turkey?

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Target (TGT) will lead retail earnings this week ahead of Black Friday. Can things get any worse for this beleaguered bunch or is it due time for a bounce?

It should be noted that Target is trading well ahead of its earnings in the options pits, Pete Najarain said. He noticed a high imbalance of call buying versus put buying which is an encouraging sign the retailer could be shaping up to go higher when it reports. TGT buyers are looking for a positive result, Pete said.

A bounce is needed in these names, according to Jeff Macke. He said a trade in TGT could work but wouldn’t get long as an investment. Remember that the retailer missed sales two of the three months that make up the quarter, he said. People are betting that it reports “not horrible” numbers. The question is whether such low expectations are enough to give the stock the bounce it needs.

Symbol
Price
 
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XXICM
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DKS
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GPS
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TGT
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Trader disclosure: On Nov. 19, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Finerman's Firm Owns S&P 500 Options, Finerman's Firm Owns Russell 2000 Puts, Finerman's Firm Is Short (IWM), Finerman's Firm Is Short (MDY), Finerman's Firm Is Short (SPY), Finerman's Firm Is Short (IJR), Finerman's Firm Is Short (IYR), Finerman's Firm Owns (BIIB) Options, Finerman's Firm And Finerman Own (GS), Finerman's Firm Owns (HD) And (HD) Puts, Finerman Owns (HD), Finerman's Firm Owns (KSS), Finerman's Firm Is Short (LEH) And Owns (LEH) Puts, Finerman's Firm Is Short (LEN), Finerman's Firm Owns (LTD), Finerman's Firm Owns (MSFT) Options, Finerman's Firm Owns (TWX), Finerman's Firm Owns (YHOO), Finerman's Firm Owns (WMT), Finerman's Firm Owns (NDAQ), Finerman's Firm Owns (NYX), Finerman's Firm Owns (NMX) Options, Finerman's Firm Owns (BEAS) Options, Macke Owns (DIS), Macke Owns (YHOO), Najarian Owns (AMTD) Options, Najarian Owns (CSCO) Options, Najarian Owns (YHOO) Options, Najarian Owns (GOOG) Options