By Dan Darrow
September 29, 2022
Intraday Update: KSS, ILMN
We are going to work a little quicker to lock in money on KSS. The initial target was originally <24.50 for the Oct21 $26 - $22.50 put spread, but the stock is finding buying interest closer to 25 this week. The plan will be to close the current spread and roll down to a lower debit Oct21 $25 - $22.50 put spread. The next target will be <24.25 and we will also institute a new technical stop on the position at 26.85 moving forward (above yesterday's high and the 8day ema).
ILMN caught an upgrade yesterday morning, sending the stock rallying pre-trade initiation. The Nov18 $180 - $ 170 put spread was opened with the stock up ~$10, but continued strength on the name is beginning to change the bearish setup. A pop to 207+ is sending the stock above the 50day sma, and momentum may build quickly above this level, so the trade needs to be closed even though it is not at the debit stop loss range. We can watch for a potential revisit if ILMN resets below 185 in the near future.
Trader Author Portfolio Holdings
**As of the date and time of publication