Our Nike (NKE) put is deep in the money, and I am recommending we accept shares. The math of selling calls makes more sense and should get us back to breakeven faster. The company is scheduled to report earnings on Monday after the close. We will likely put a protective in place ahead of the…
I am recommending we roll our protective puts on Best Buy (BBY), VanEck Vectors Semiconductor ETF (SMH), Target (TGT) and SPDR S&P Biotech ETF (XBI) out one week and to lower strikes to keep our hedges in place. BBY Jun Monthly (6/17) 67.50 Put Note: No action is needed on the BBY Jun Monthly (6/17)…
If you are in the Micron Technology (MU) put or covered call position, I am recommending you buy a protective put to hedge against a possible market sell-off following today’s Federal Reserve announcement. Note that this put is being purchased as a hedge. Ideally, the market will go up and it will expire worthless.…
We have positions in Best Buy (BBY), Micron Technology (MU) and Target (TGT) expiring today. Our BBY protective put is on track to expire worthless. Since this was a hedge against a covered call position, this was the desired outcome. Plus, the call we sold covered the cost of the hedge. I am recommending…
Target (TGT) announced earnings today that were well below Wall Street’s expectations. Management also forecast single-digit revenue growth this year, as well as continued pressure on profits margins. Target noted that fuel and freight costs will be $1 billion more than it had expected this year and said it will try not to pass the…
I am recommending we roll the short leg of our Target (TGT) LEAP call spread out one week and to a lower strike to generate more income. Because the retailer is scheduled to announce earnings tomorrow, I am also recommending we spend some cash to purchase a protective put. Note: No action is needed on…
We purchased protective puts on our VanEck Vectors Semiconductor ETF (SMH) and Target (TGT) LEAP call spreads to hedge against the Federal Reserve announcement. We’re going to be selling the protective puts and rolling the SMH call. SMH Jan 2023 (1/20/23) 250/May Monthly (5/20) 260 Call Spread SMH May Week One (5/6) 220 Put Note:…
The Federal Reserve is expected to announce its decision on interest rates tomorrow, which could trigger a sharp sell-off in stocks. I am recommending we buy protective puts on our VanEck Vectors Semiconductor ETF (SMH) and Target (TGT) LEAP call spreads. SMH Jan 2023 (1/20/23) 250/May Monthly (5/20) 260 Call Spread Note: No action is…
I am recommending we roll the short legs of our VanEck Vectors Semiconductor ETF (SMH) and Target (TGT) LEAP call spreads. SMH Jan 2023 (1/20/23) 250/Apr Week Four (4/22) 265 Call Spread Note: No action is needed on the SMH Jan 2023 (1/20/23) 250 Call at this time. Current Stock Price: $246.40 Cost Basis: $58.45…
I am recommending we roll the short leg of our Target (TGT) LEAP call spread to avoid being called out and capture more potential appreciation. Note: No action is needed on the TGT Jan 2023 (1/20/23) 200 Call at this time. Current Stock Price: $234.16 Cost Basis: $49.67 Action: Buy to close the TGT Apr…
