How to Trade Target

The video discusses the tail end of the earnings season, focusing on Target's upcoming report. Analysts expect solid earnings and a positive outlook for Target, with a focus on store traffic. The video explains a risk reversal strategy involving selling puts and buying calls, specifically for Target, to capitalize on its stock valuation and volatility. The strategy involves selling a 62.5 put and buying an 85 strike call, aiming for a potential breakout above the all-time high.

How does the current volatility environment affect the trading strategy discussed?

What is the significance of the 85 strike call mentioned in the text?