This complimentary article from Options Profits was originally published on December 29 at 8:55am EST. Don't risk missing over 40 options trade ideas every week and exclusive commentary from over 10 experts. Click here for more information.

On the heels of a dismal quarter from Sears(SHLD), many of the 'big box' retailers are seeing some stiff headwinds as they try to rally.

The companies are seeing margins squeezed from all sides. Companies like Family Dollar(FDO) and Dollar General(DG) , two of the VERY low end retailers, are squeezing the low end. Online retailers like (AMZN) are squeezing a lot of the mid tier products.

This is besides the fact that the retailers themselves are in stiff competition with each other. As the economy has healed we have been seeing more people return to the 'old normal.' I think retailers like Nordstrom(JWN) and even Macy's(M) see a nice uptick in the next year. However, I think the big winner could be Target. Nicer than FDO and DO, and a small step up on Wal-Mart(WMT), but still very competitively priced. I think the discount retailer's stock is now trading at a discount.

Let's see what Jill and Scott have to say about TGT from the fundamental and technical perspective:

At under $52 per share I think it is a decent value and could surprise during its next earnings. We can buy the February 52.5 calls for under $1.20, I think these are an extremely good value.

Trade: Buy to open 1 TGT February 52.5 call for $1.16.

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