I am recommending we roll our protective puts on Best Buy (BBY), VanEck Vectors Semiconductor ETF (SMH), Target (TGT) and SPDR S&P Biotech ETF (XBI) out one week and to lower strikes to keep our hedges in place.
BBY Jun Monthly (6/17) 67.50 Put
Note: No action is needed on the BBY Jun Monthly (6/17) 80 Call at this time.
Current Stock Price: $68.51
Cost Basis: $95.86
Action:
- Sell to close the BBY Jun Monthly (6/17) 67.50 Put for around $0.64
- Buy to open the BBY Jun Week Four (6/24) 64 Put for around $0.74
- Set initial debit limit at $0.10, but adjust as needed to roll today
New Cost Basis: $95.96
SMH Jun Monthly (6/17) 205 Put
Note: No action is needed on the SMH Jan 2023 (1/20/23) 250/Jun Week Four (6/24) 245 Call Spread at this time.
Current Stock Price: $204.90
Cost Basis: $49.33
Action:
- Sell to close the SMH Jun Monthly (6/17) 205 Put for around $20
- Buy to open the SMH Jun Week Four (6/24) 200 Put for around $4
- Set initial debit limit at $0.80, but adjust as needed to roll today
New Cost Basis: $50.13
TGT Jan 2023 (1/20/23) 200 Call
Note: No action is needed on the TGT Jan 2023 (1/20/23) 200 Call at this time.
Current Stock Price: $145.03
Cost Basis: $15.98
Action:
- Sell to close the TGT Jun Monthly (6/17) 140 Put for around $0.48
- Buy to open the TGT Jun Week Four (6/24) 135 Put for around $1.01
- Set initial debit limit at $0.53, but adjust as needed to roll today
New Cost Basis: $16.51
XBI Jun Monthly (6/17) 60 Put
Note: No action is needed on the XBI Jun Monthly (6/17) 70 Call at this time.
Current Stock Price: $62.78
Cost Basis: $92.01
Action:
- Sell to close the XBI Jun Monthly (6/17) 60 Put for around $0.39
- Buy to open the XBI Jun Week Four (6/24) 55 Put for around $0.29
- Set initial credit limit at $0.10, but adjust as needed to roll today
New Cost Basis: $92.91