May 18, 2020  Terry’s Tips Trade Alert  – Earnings  Eagle  Portfolio

 

With the stock up sharply the last two days, we have become negative net delta.  These trades will establish artificial calendar spreads at the 127 and 128 strikes, made necessary because the 19Jun20 series does not offer those strikes:

 

BTC 2 TGT 22May20 115 calls (TGT200522C115)

STO 2 TGT 22May20 127 calls (TGT200522C127)
BTO 2 TGT 19Jun20 125 calls (TGT200619C125)
STC 2 TGT 19Jun20 115 calls (TGT200619C115) for a debit of $.62 (selling a vertical roll)

BTC 2 TGT 22May20 115 calls (TGT200522C115)

STO 2 TGT 22May20 128 calls (TGT200522C128)

BTO 2 TGT 19Jun20 130 calls (TGT200619C130)

STC 2 TGT 19Jun20 115 calls (TGT200619C115) for a credit of $.92 (selling a vertical roll)

 

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

 

Happy trading.

Terry