Target Stock was not on my watch list for today but the stock is continuing with its advance.
At $81 I think the stock is expensive although the 52 week high is $90.39 made on Sep 10 2018. With earnings coming out on May 22, I setup the following trade.
Credit put spread – May 17 Expiry
Sold 10 put contracts for May 17 at the $75 put strike for 50 cents = $500.00
I am offering to buy the $67.50 put strike for 5 cents to turn this into a $7.50 spread.
If filled, this will risk $7500 for the chance to earn $435 for a return of 5.8% for the month.
I have offers in to buy to close the short $75 put strike for 15 cents, good until May 3 2019.
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. You always trade at your own risk. Read the full disclaimer.