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 take advantage of the short week and sell calls against a new position.
The stock I am going to suggest is a stock we traded in the past.
That stock is AMC.
AMC is trading around $16.16 as I write this.
My suggestion is to buy AMC at the market.
Then Sell to Open (1) April 18th $16.50 call for 35 cents for every 100 shares you buy.
Based on the nominal portfolio, I suggest a buying of 400 shares or 6.5% of the portfolio.
