We have positions in Best Buy (BBY), Micron Technology (MU) and Target (TGT) expiring today.
Our BBY protective put is on track to expire worthless. Since this was a hedge against a covered call position, this was the desired outcome. Plus, the call we sold covered the cost of the hedge.
I am recommending we roll our MU put out one week and to a higher strike to generate more income and reduce our net debit on the position.
Finally, the short leg of our TGT LEAP call spread is on track to expire worthless. We will simply watch it do so. Our cost basis on this position was great reduced by the protective put we bought ahead of earnings. I will recommend a new call to sell against the long option soon.
BBY May Week Four (5/27) 64 Put
Note: No action is needed on the BBY Jun Week One (6/3) 80 Call at this time.
Current Stock Price: $83.78
Cost Basis: $96.36
Action: Watch put expire worthless
MU May Week Four (5/27) 65 Put
Current Stock Price: $72.73
Net Debit: $1.11
- Buy the close the MU May Week Four (5/27) 65 Put for around $0.01
- Sell to open the MU Jun Week One (6/3) 69 Put for around $0.53
- Set initial credit limit at $0.52, but adjust as needed to roll today
New Net Debit: $0.59
TGT Jan 2023 (1/20/23) 200/May Week Four (5/27) 230 Call Spread
Note: No action is needed on the TGT Jan 2023 (1/20/23) 200 Call at this time.
Current Stock Price: $163.70
Cost Basis: $15.13
Action: Watch TGT May Week Four (5/27) 230 Call expire worthless