May 7, 2020  Terry’s Tips Trade Alert #2 –  Earnings Eagle  Portfolio

 

There is little remaining extrinsic value in these short options so we will roll over now and reduce our uncomfortably long net delta.  Rather than buy new full calendars with the cash we generate, we will buy a shorter-term calendar with the sell side in the announcement week due to the extremely low cost for those spreads:

 

BTC 5 TGT 08May20 115 puts (TGT200508P115)

STO 5 TGT 15May20 115 puts (TGT200515P115) for a credit of $1.00 (selling a calendar)

 

BTC 2 TGT 08May20 116 calls (TGT200508C116)

STO 2 TGT 15May20 116 calls (TGT200515C116) for a credit of $1.13 (selling a calendar)

BTO 5 TGT 19Jun20 110 puts (TGT200619P110)
STO 5 TGT 22May20 110 puts (TGT200522P110) for a debit of $1.55  (buying a calendar)

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

 

Happy trading.

Terry