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/Feb Week One (2/4) 275 Call Spread
Note: No action is needed on the SMH Jan 2023 (1/20/23) 250 Call at this time.
Current Stock Price: $278.56
Cost Basis: $66.90
Action:
- Buy to close the SMH Feb Week One (2/4) 275 Call for around $5.35
- Sell to open the SMH Feb Week Two (2/11) 280 Call for around $5.50
- Set initial credit limit at $0.15, but adjust as needed to roll today
New Cost Basis: $66.75
TGT Jan 2023 (1/20/23) 200/Feb Week One (2/4) 220 Call Spread
Note: No action is needed on the TGT Jan 2023 (1/20/23) 200 Call at this time.
Current Stock Price: $218.13
Cost Basis: $59.11
Action:
- Buy to close the TGT Feb Week One (2/4) 220 Call for around $0.97
- Sell to open the TGT Feb Week Two (2/11) 220 Call for around $2.89
- Set initial credit limit at $1.92, but adjust as needed to roll today
New Cost Basis: $57.19