TJX Companies, Inc. is an off-price retailer offering apparel and home fashions in the U.S., Canada, Europe, and Australia. The company operates different segments, including Marmaxx, HomeGoods, TJX Canada, and TJX International, utilizing both physical stores and online platforms. TJX’s stock has surged recently, following a pattern that started from a low on March 13, 2025. A short-term rise to about $148.10 is expected to finish a wave pattern, staying above the low from August 26, 2025. Since its low of $32.72 in March 2020, the stock has shown a strong upward trend. The first significant rise peaked at $77.35, while a second low was recorded at $53.69 in 2022, representing a 0.5 Fibonacci retracement. Current patterns suggest more highs are likely, but caution is advised at this stage. During the third wave, the stock reached $69.77 and later $121.13, with expectations for it to go beyond $128. Further price movements indicate a potential for growth, although corrections may present good buying chances. Looking ahead to September 6, 2025, ongoing positive momentum is expected. TJX seems poised for more growth before any corrections, which could be appealing for investors interested in the retail sector. The current rally in TJX is expected to reach the $148.10 target, marking the completion of a pattern that started earlier this year. Recent data from the Commerce Department showed a 0.8% increase in retail sales for September 2025, supporting this positive outlook for consumers. Traders might consider short-term call options, such as those expiring in November 2025, to benefit from this expected surge. As long as the stock stays above the August 26, 2025 low, the outlook remains strong. This setting could be beneficial for selling cash-secured puts with strike prices below that support level, allowing for income generation while waiting. This aligns with the trend observed in 2022-2023, where off-price retailers thrived as consumers sought value during inflation. Our key focus is not just on the immediate rally, but also on the expected pullback after testing the $148.10 area. This drop should be seen as a great buying opportunity compared to the March 2025 low. Being ready to purchase longer-term positions during this anticipated correction is vital. After that correction occurs, we plan to buy longer-dated call options, possibly for January or March 2026. This strategy allows enough time for the next major upward wave to develop. TJX’s solid fundamentals, including a 12% revenue beat reported in its last earnings call in August 2025, support this longer-term positive view. Currently, the implied volatility for TJX options is around 24%, near its 52-week average. This means option premiums are reasonably priced. However, if the stock breaks below the trendline support from March 2025, we will need to reevaluate this outlook.

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