KSS and TGT
Posted by Jack Haddad on December 31, 2007 at 9:58 am
Team,
I direct your attention to KSS and TGT. I like the the Jan strike 45 for KSS at 1.85/contract and the Jan strike 50 for TGT at 2.15/contract. I would have taken postions in both today. However, I cannot wrote the strikes mentioned above due to low trading volume. you’ll notice KSS is trading under 90 contract and TGT is under 100. These volumes are too anemic and will cause a huge shift in the price for my size potfolio. Both strike prices are considered “at the money” and offer a good return in less than 3 weeks remaining to expiration. I recommend them highly.
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Jack:
Thanks for the ideas. May do some of each.
Don’t think you gave yourself enough credit on INTC…think your intrinsic value was .35 not .25. I noticed it because I have a question. I see the 25 INTC puts for Jan are .30 right now. So buying the stock at this moment at 26.74 and writing the calls for 2.09 give me a net price of 24.65 or the same .35 - so I net an extra nickle by buying stock/writing calls. But suppose it was the other way; suppose the Jan INTC puts were at .40 so my intrinsic value were higher. Would you write the puts instead of the purchase/calls combo or do you still prefer the calls.
Also, I have a few questions that may not be best written on the board. Is there any way to contact you via email?
Mike