Target (TGT) delivered an excellent earnings report and strong outlook, causing shares to pop more than 10%. I am recommending we roll the short leg of our LEAP call spread to capture more potential appreciation.
Note: No action is needed on the TGT Jan 2023 (1/20/23) 200 Call at this time.
Current Stock Price: $222.50
Cost Basis: $52.26
- Buy to close the TGT Mar Week One (3/4) 215 Call for around $9.80
- Sell to open the TGT Mar Monthly (3/18) 220 Call for around $9
- Set initial debit limit at $0.80, but adjust as needed to roll today
New Cost Basis: $53.06