I am recommending we roll the short legs of our VanEck Vectors Semiconductor ETF (SMH) and Target (TGT) LEAP call spreads out two weeks.
SMH Jan 2023 (1/20/23) 250/Apr Week Two (4/8) 265 Call Spread
Note: No action is needed on the SMH Jan 2023 (1/20/23) 250 Call at this time.
Current Stock Price: $250.78
Cost Basis: $60.55
Action:
- Buy to close the SMH Apr Week Two (4/8) 265 Call for around $0.10
- Sell to open the SMH Apr Week Four (4/22) 265 Call for around $2.20
- Set initial credit limit at $2.10, but adjust as needed to roll today
New Cost Basis: $58.45
TGT Jan 2023 (1/20/23) 200/Apr Week Two (4/8) 220 Call Spread
Note: No action is needed on the TGT Jan 2023 (1/20/23) 200 Call at this time.
Current Stock Price: $221.05
Cost Basis: $50.32
Action:
- Buy to close the TGT Apr Week Two (4/8) 220 Call for around $2.35
- Sell to open the TGT Apr Week Four (4/22) 225 Call for around $3
- Set initial credit limit at $0.65, but adjust as needed to roll today
New Cost Basis: $49.67