This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

TJX: How Does This Stock Fit Your Portfolio?

Stocks in this article: TJX

The TJX Companies (TJX; $59.90) you will most likely know as T.J. Maxx, Marshalls and HomeGoods retail stores. TJX now has over 2,000 stores operating in in the U.S. and Canada. Beginning in 1956, TJX has grown into what it is today, a giant in what is known in its industry as "off-price" retailing.

TJX began 2011 around $44 per share. Stocks that buck the general direction or major cycles in control of the market during a year's time tend to be foretelling a story. The TJX story could easily be one with a happy ending as we enter the remaining month of this wild stock market year.

For a look back and reference, we began 2011 at Dow 11,578. Thus, the Dow has traveled over the course of the past 11 months what feels to be everywhere and nowhere! Not so the stock price course of TJX as it has bucked the volatility as well as price direction of the major stock market indices for most of 2011. Check out Yahoo! Finance Interactive charts. Put up the one-year chart for TJX and then use the compare section found at the top of that TJX chart. Click on compare and checkmark the box for the Dow Jones. Then hit the draw button and notice how TJX has traveled its own upward price-directional course as it deviated from the direction of the Dow Jones, beginning in late June.

Let's also review the T3/OP video with Jill and Scott for more color:



When stocks buck trends of the major indices, they either are gaining or losing relative strength. If losing price ground while the averages are not, they soon become excellent short sale candidates. If gaining while the averages are not, that should arouse the bull in any trader! Such is the case for TJX.

Fundamentally TJX has excellent, sound management that became quite apparent when perusing its books (income statements and balance sheets). Net earnings for Q4, ending on January 31, should exceed a 17% growth rate as compared to those of 2010's Q4.

Consider a call calendar spread in TJX. Calendar spreads are controlled risk spreads and generally low regarding capital cost. They are directionally biased, but attempt to use time as both an ally as well as reducing dollar risk.

Trades: Sell to open 3 TJX December 60 calls at $1.50 and buy to open 3 TJX January calls for $2.50.

The total risk for this calendar spread is the premium paid, or $1.00 ($100) per spread.

As always, I will monitor the trade on this site in the comments section below.

On Saturday, December 3, the CBOE, Option Pit and OptionsProfits are hosting a full-day course dedicated to mastering strategies for trading the VIX. CLICK HERE FOR INVITE AND TO REGISTER.

OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits

T3Live can be followed on Twitter at twitter.com/_t3Live_

At the time of publication, Jill Malandrino, Skip Raschke and Scott Redler held no positions in the stocks or issues mentioned.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,461.16 +73.95 0.43%
S&P 500 2,032.74 +3.19 0.16%
NASDAQ 4,708.4770 +26.98 0.58%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters