While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to 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.
One of the strategies that I particularly like is selling options against stocks that have weekly options.
In other words, doing covered calls with stocks that have weeklies.
With the value of the VIX as of late, the returns have been greatly reduced. ?
But I found a stock that fits well within the set up I like.
That stock is GOGO.
Buy GOGO at the market, which is $19.93 as I write this.
Then Sell to Open (1) July 17th - $20 call for every 100 shares you buy.
You should try and sell them for $.30.
We could go out to next week, but I prefer to sell this week's and if we are not assigned, I would look to sell another round for next week.
If the calls are assigned, the return will be 1.9% for 4 days.