I am recommending we roll the short leg of our Target (TGT) LEAP call spread out two weeks and to a higher strike price. This will allow us to capture more potential appreciation while generating some income to reduce our cost basis on the position.
Note: No action is needed on the TGT Jan 2024 Monthly (1/19/24) 150 Call at this time.
Current Stock Price: $164.62
Cost Basis: $49.05
- Buy to close the TGT Sep Monthly (9/16) 175 Call for around $0.06
- Sell to open the TGT Sep Week Five (9/30) 180 Call for around $0.47
- Set initial credit limit at $0.41, but adjust as needed to roll today
New Cost Basis: $48.64