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.
SNAP has rallied back nicely, but like a lot of stocks right now, it appears a bit overbought in the short term.
Based on this, I am going to suggest you sell a front week call against the position.
My suggestion today is this:
Sell to Open (1) June 20th - $15.50 call for every 100 shares you own.
You should be able to sell them for 27 cents.
These are the calls that expire in three days.
Based on selling these calls for 27 cents, it will mean that you will have collected $2.37 cents per share in call premium on the SNAP position. This, of course, assumes that you followed all the alerts on the stock.
Do not sell these calls if you don't own the stock.
