I am recommending we close our QuantumScape (QS) and Target (TGT) positions.
As I said last week, QS has sold off sharply since we initiated the position in early April, and I do not expect a recovery in this speculative stock in the foreseeable future. Therefore, I am recommending we sell our shares at a loss and find a better use for the capital we have tied up.
Our TGT call spread, on the other hand, has worked out very well. We will book a big profit for a return of around 9% in just nine days.
QS Uncovered Shares
Current Stock Price: $23.85
Cost Basis: $34.34
Action: Sell shares at market
Loss: $10.49, or $1,049 per 100 shares
TGT Mar Monthly (3/18) 200/Jul Monthly (7/16) 252.50 Call Spread
Current Stock Price: $252.90
Cost Basis: $50.77
- Buy to close the TGT Jul Monthly (7/16) 252.50 Call for around $1.30
- Sell to close the TGT Mar Monthly (3/18) 200 Call for around $56.70
Profit: $4.63, or $463 per spread