The market turbulence since the Omicron coronavirus variant spooked investors has hit some of our stocks hard.
I am recommending we roll our Advanced Micro Devices (AMD) put to a lower strike to buy time for the stock to recover and reduce our risk.
I am also recommending we roll the short leg of our Target (TGT) LEAP call spread to a lower strike while keeping the expiration date the same to generate more income.
AMD Dec Week One (12/3) 150 Put
Current Stock Price: $149.57
Cash in Hand: $1.54
- Buy to close the AMD Dec Week One (12/3) 150 Put for around $2.85
- Sell to open the AMD Dec Week Two (12/10) 145 Put for around $3.40
- Set initial credit limit at $0.55, but adjust as needed to roll today
New Cash in Hand: $2.09
TGT Jan 2023 (1/20/23) 200/Dec Monthly (12/17) 260 Call Spread
Note: No action is needed on the TGT Jan 2023 (1/20/23) 200 Call at this time.
Current Stock Price: $244.83
Cost Basis: $64.77
- Buy to close the TGT Dec Monthly (12/17) 260 Call for around $1.10
- Sell to open the TGT Dec Monthly (12/17) 250 Call for around $3.30
- Set initial credit limit at $2.20, but adjust as needed to roll today
New Cost Basis: $62.57