The short leg of our Target (TGT) LEAP call spread is deep in the money following a strong move up in the stock over the past week and a half. I am recommending we spend some cash to roll our call out three weeks and to a higher strike price to avoid being called out of the position.
Note: No action is needed on the TGT Jan 2024 Monthly (1/19/24) 150 Call at this time.
Current Stock Price: $167.61
Cost Basis: $41.36
Action:
- Buy to close the TGT Oct Week Four (10/28) 160 Call for around $8.05
- Sell to open the TGT Nov Monthly (11/18) 170 Call for around $7.35
- Set initial debit limit at $0.70, but adjust as needed to roll today
New Cost Basis: $42.06