The market gapped down this morning following the release of the latest consumer price index report, which showed core inflation was at a 40-year high.
Yet, with stocks bouncing off their lows and key levels on the major indices holding, I want to close our Target (TGT) protective put at a profit. It has served its purpose, and the income we generate will reduce our cost basis on the position.
Note: No action is needed on the TGT Jan 2024 Monthly (1/19/24) 150/ Oct Week Four (10/28) 160 Call Spread at this time.
Current Stock Price: $149.261
Cost Basis: $43.51
Action: Sell to close the TGT Oct Week Two (10/14) 150 Put for around $2.15, but adjust as needed to close today
New Cost Basis: $41.36