May 29, 2020  Terry’s Tips Trade Alert – Earnings Eagle Portfolio – limit order

 

We will start rolling over to next week.  For the last two weeks, the one-week-out option prices seemed to move higher on Monday rather than falling, so we are letting the out-of-the-money options expire worthless with hopes of getting better prices on Monday when we sell the 5Jun20 series:

 

BTC 3 TGT 29May20 120 puts (TGT200529P120)

STO 3 TGT 5Jun20 120 puts (TGT200605P120) for a credit limit of $1.50 (selling a calendar)

 

If that trade executes:

 

BTO 3 TGT 17Jul20 120 puts (TGT200717P120)

STC 3 TGT 19Jun20 120 puts (TGT200619P120) for a debit of $1.60  (buying a calendar)

 

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

Happy trading.

Terry