I am recommending we ladder up our Applied Materials (AMAT) and Target (TGT) puts — i.e., roll to higher strikes for more cash. Note that the expiration date on the positions will remain the same.
Both stocks have run up this week, with TGT more than 5% higher today following the release of the company’s earnings report.
No action is needed on our Chewy (CHWY) Nov Monthly (11/20) 62.50 Put or Gilead Sciences (GILD) Nov Monthly (11/20) 59.50 Call at this time.
AMAT Nov Monthly (11/20) 70 Put
Current Stock Price: $75.74
Action:
- Buy to close the AMAT Nov Monthly (11/20) 70 Put for around $0.03
- Sell to open the AMAT Nov Monthly (11/20) 74 Put for around $0.022
- Set your initial credit limit at $0.19 but adjust if needed to roll today
TGT Nov Monthly (11/20) 160 Put
Current Stock Price: $171.10
Action:
- Buy to close the TGT Nov Monthly (11/20) 160 Put for around $0.14
- Sell to open the TGT Nov Monthly (11/20) 167.50 Put for around $0.56
- Set your initial credit limit at $0.42, but adjust if needed to roll today
Disclosure: I have positions or trade in and out of AMAT, CHWY, GILD and TGT.