I am recommending we roll the short legs of our VanEck Vectors Semiconductor ETF (SMH) and Target (TGT) LEAP call spreads.
SMH Jan 2023 (1/20/23) 250/Jan Monthly (1/21) 310 Call Spread
Note: No action is needed on the SMH Jan 2023 (1/20/23) 250 Call at this time.
Current Stock Price: $288.30
Cost Basis: $69.90
Action:
- Buy to close the SMH Jan Monthly (1/21) 310 Call for around $0.07
- Sell to open the SMH Jan Week Four (1/28) 300 Call for around $2.39
- Set initial credit limit at $2.32, but adjust as needed to roll today
New Cost Basis: $67.58
TGT Jan 2023 (1/20/23) 200/Jan Monthly (1/21) 235 Call Spread
Note: No action is needed on the TGT Jan 2023 (1/20/23) 200 Call at this time.
Current Stock Price: $226.34
Cost Basis: $61.16 (Note that the cost basis was incorrectly listed at $62.10 in the previous alert.)
Action:
- Buy to close the TGT Jan Monthly (1/21) 235 Call for around $0.17
- Sell to open the TGT Jan Week Four (1/28) 235 Call for around $0.98
- Set initial credit limit at $0.81, but adjust as needed to roll today
New Cost Basis: $60.35