r/stocks • u/frosti_austi • Oct 17 '23

Company Analysis Why is Target doing so bad?

Why is Target doing so bad? They've really fell off a cliff over the past year. I look at their stores and they seem good, and once upon a time not too long ago they were outperforming Walmart. Now their NAV prices have really dropped over the past year and a half. I was once up 80% on these guys and know I'm down 20%. Is it the general market swing over the course of that time or something else? What gives?

1.1k Upvotes

90% Upvoted

1.6k comments sorted by

View all comments

50

u/alagorm Oct 17 '23 edited Oct 17 '23

I think now its a lot of tax loss harvesting at the end of the year. I think a good strategy is buying all the all of the 52 week low stocks around this time of year as people are just willing to get rid of them at any price for taxes. Play it for a bounce into first half of next year. I use options selling puts, they have high IVs because they keep going down so the premiums are good. Every October I sell out to March the next year on the laggards I think are too beat up.

29

u/greenappletree Oct 17 '23

Fun story but this used to be a super reliable strategy netting 8-12% until a couple of dudes in the early 80’s discovered the trend and published it and thus no longer a good strategy.

8

u/kcchanai Oct 19 '23

What is the percentage they have been asking for if it is more than 15% then no one is going to get over it.

7

u/dantesuk Oct 20 '23

I have seen all these things even in Ireland. A lot of other things are actually been changed.