I am recommending we roll the short leg of our Target (TGT) LEAP call spread out two weeks and to a lower strike price to generate more income and reduce our cost basis on the position.
Note: No action is needed on the TGT Jan 2024 Monthly (1/19/24) 150 Call or TGT Sep Week Five (9/30) 145 Put at this time.
Current Stock Price: $152.04
Cost Basis: $47.28
- Buy to close the TGT Sep Week Five (9/30) 180 Call for around $0.01
- Sell to open the TGT Oct Week Two (10/14) 160 Call for around $2.06
- Set initial credit limit at $2.05, but adjust as needed to roll today
New Cost Basis: $45.23