TGT

We hold two May 55 puts with a cost basis that has been reduced by partial-profit taking to 1.20. Since I have no tolerance for absorbing even a slight loss on option trades, especially put options, I'll suggest tethering the two that we own to a 1.28 stop-loss.  That's a tick beneath last Thursday's low, so you can infer that we are using a structural support to tell us when to bail out.  I've included a Tradestation chart of the May 55 put option.  The option exchanges' new symbols are so crazy-looking that I haven't bothered yet to find out how they arrived at TBJ1005622P55 to designate  TGT May 55 puts. _______ UPDATE (Apr 13, 3:39 p.m. EST):  We exited the remainder of our position on the stop-loss for a small theoretical gain.

There was quite a bit of short-squeeze in yesterday's leap, making it hard to predict whether the day's highs will endure.  You could not have bought May 56 puts as advised because  strikes recently listed above $50 are at $2.50 intervals. Still, because a subscriber reported buying May 55 puts for 1.40, we'll use that price to track the position for your further guidance.  Assuming four puts owned (or a multiple thereof), offer two to close today for 1.60.  if the stock is weak on the opening, we are likely to be filled at a better price.  You should also offer two May 50 puts short for 1.20, good-til-canceled. ______ UPDATE (1:40 p.m. EST): We sold the puts on the opening for 1.60, lowering the cost basis of the two puts we still hold to 1.20.  One might think that after 35 years in the game, I'd have enough street savvy to have avoided getting ripped off by the dirtballs who make option markets in this stock (in all stocks, actually). Alas, I have to keep reminding myself that selling market-   or limit-on-opening is nearly always a losing game.  In this case, the stock made highs and lows $1.21 apart on the opening bar, allowing both the NYSE specialist and option market-makers more leeway than usual in fleecing retail customers before the dust had settled. A relative handful of puts trade near 1.60 on the opening rotation, but as soon as the supply of them from the likes of us had become exhausted, the market makers  took them up to 1.95 (there were no trades between 1.65 and 1.85)  and shorted a bunch in anticipation of a snap-back rally in the stock. When this occurred (the specialist is a thief just like the market-makers, and although there is no formal collusion between the two, they know what to expect from each other), they

Target presumably has been bound for a potential major top at 56.26 since last July, when it embarked on a follow-through rally on the heels of an impulsive, 80% gain last spring.  I'll recommend bidding for four May 56 puts if and when the stock reaches 56.10, but stay tuned for updates, since it may be possible to hone our bid price down to a fine science when the Hidden Pivot is closely approached. ______ UPDATE: Ha-ha the joke's on us there are no May 56 puts.  Instead, let's try to buy two May 55 puts for 1.31.  They've traded as low as 1.29 and are currently offered at 1.36 off a rapaciously wide spread of 1.29-1.36.