March 25, 2020  Terry’s Tips Trade Alert  –  Earnings Eagle  Portfolio

 

With the stock down over $6, we have become uncomfortably long.  We can roll over our highest-strike calls to next week and use the cash to add a new lower-strike spread, and both trades will reduce our net delta:

BTC 2 TGT 27Mar20 101 calls (TGT200327C101)
STO 2 TGT 03Apr20 101 calls (TGT200403C101) for a credit of $1.75 (selling a calendar)

BTO 1 TGT 19Jun20 95 put (TGT200619P95)
STO 1 TGT 27Mar20 94 put (TGT200327P94) for a debit of $6.98 (buying a diagonal)

Be[Ta1]  prepared to change this (these) price limit(s) by $.05 or more in order to get an execution.

 

Happy trading.

Terry