From our Morning Report:
Buying habits are changing.
This is not news to people who've been listening to our Live Trading Webinars for the past few months or followed along in our PSW Reports or our Live Member Chat Room (all of which you can be join right HERE). In fact, just last Thursday we decided TGT was cheap enough and opened the following trade at 1:40 pm for our Long-Term Portfolio:
- We talked about how silly TGT is at $160 and we sold 5 2024 $200 puts in the LTP for $19.85 ($9,925) and there's nothing wrong with that TARGET (so clever!) so let's add 15 TGT 2024 $150 ($32.50)/200 ($13.50) bull call spreads at $19 ($28,500) and that will put us in overall at net $18,575 on the $75,000 spread. If TGT goes lower, we sell 50 more calls and add 10 more longs.
We already had a loss on the puts but we sold 5 2024 $200 puts for $19.95 so our net target on 500 shares is $180.05 and our position looks like this:
TGT Short Put 2024 19-JAN 200.00 PUT [TGT @ $159.67 $-1.37] -5 4/7/2022 (591) $-9,925 $19.85 $30.53 $-19.85 $50.38 - $-15,263 -153.8% $-25,188 TGT Long Call 2024 19-JAN 150.00 CALL [TGT @ $159.67 $-1.37] 15 6/2/2022 (591) $48,750 $32.50 $-0.48 $32.03 $-1.26 $-713 -1.5% $48,038 TGT Short Call 2024 19-JAN 200.00 CALL [TGT @ $159.67 $-1.37] -15 6/2/2022 (591) $-20,250 $13.50 $-0.65 $12.85 $-0.93 $975 4.8% $-19,275 TGT should be down around $145 this morning on the news but taking a writedown on inventory is not really news and TGT expects to return to normal margins (6%) in the second half of the year so, if you are a long-term investor, NOW is the time to be buying, not selling.
