While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to the six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
I would like to make a suggestion on a stock we traded in the past. That stock is AMC Entertainment Holdings, Inc. (AMC).
AMC is trading at $14.44 as I write this. And AMC reported already and does not report again until May 30th.
My suggestion is to buy AMC at the market.
After you buy the shares, then Sell to Open (1) March 22nd Call for $0.43 for every 100 shares you buy.
These are the calls that expire next Friday, or in a week and a half.
The return will be 3.5% for that time period if the calls are assigned.
Based on the nominal portfolio, limit the buy in to 400 shares or 5.7% of the portfolio.
