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.
RIG is trading just under $9 as I write this and the market is taking a breather, so I would like to collect some more cash on this position.
My suggestion today is to Sell to Open (1) April 18th - $9.00 call for every 100 shares you own.
You should be able to sell them for 32 cents.
These are the calls that expire in a week and one half.
This will bring the premiums collected on this position to $1.13