Selling our TGT call contracts.

Shares of TGT have moved lower, breaking the 50-day average support line.

With a growing risk of recession, retail names could continue to face headwinds — even after some signifiant stock price declines.

By purchasing in-the-money call options we set up a position that declined less (in dollar terms) than the overall pullback for shares of TGT.

Today, we’ll sell our call contracts which allows us to keep the residual value from the option contracts — even though TGT is now below our $160 strike price.

We’ll be able to use the capital for other plays that are working better in today’s market environment.