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 Two (2/11) 280 Call Spread
Note: No action is needed on the SMH Jan 2023 (1/20/23) 250 Call at this time.
Current Stock Price: $284.11
Cost Basis: $66.75
Action:
- Buy to close the SMH Feb Week Two (2/11) 280 Call for around $5.70
- Sell to open the SMH Feb Week Four (2/25) 290 Call for around $4.50
- Set initial debit limit at $1.20, but adjust as needed to roll today
New Cost Basis: $67.95
TGT Jan 2023 (1/20/23) 200/ Feb Week Two (2/11) 220 Call Spread
Note: No action is needed on the TGT Jan 2023 (1/20/23) 200 Call at this time.
Current Stock Price: $217.06
Cost Basis: $57.19
Action:
- Buy to close the TGT Feb Week Two (2/11) 220 Call for around $0.66
- Sell to open the TGT Feb Monthly (2/18) 220 Call for around $1.77
- Set initial credit limit at $1.11, but adjust as needed to roll today
New Cost Basis: $56.08