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 know I suggested DBX yesterday and I do feel is it at a point where it is trying to find support.
This does not mean it will not drift lower and today it is selling off a bit.
As a result, I am going to suggest you sell call options against the long stock position.
Here is the trade:
Sell to Open (1) January 31st - $17 call for $0.70 for every 100 shares you bought.
This will allow you to collect some cash against the position as it is trying to bottom.
