Trade Alert 11/15/2023

Our Target (TGT) position has exploded to the upside. Unfortunately, we are way ITM (in-the-money) on our covered call at this point. Certainly a massive move higher is better than lower from an account value stand point. However, this also means that our losses on the short call offset much of the gain from the stock. So, instead of a big profit, you are left with a smaller profit overall. Now, we only recently initiated this position. At these levels, we are inclined to let the stock get “called away”. However, we will be looking for opportunities to re-enter the stock in the future. We have a variety of trades going into options expiration tomorrow: Covered calls in the following: BRK.B, TMUS, SNOW, DELL, DIS, CVX, TGT, GOLD Butterfly or Ratio spreads (1×2 or 1×3 or 1×4): WBA, BAC, EFA, TGT For the most part, we are in pretty good positions. We will need to make a decision on rolling-out or letting TGT and DELL stock get “called away”. We will have some adjustments in the ratio spreads but would prefer to make these changes Thursday or Friday. So, for now we will allow the trades to continue to progress toward expiration Friday!