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.
The GLD and the miners are getting a little pop today and as a result, DUST is selling off.
As a result, I would like to adjust the short call position on DUST.
My suggestion is to Buy to Close the March 4th - $4.50 calls on DUST for $.10.
After you close the short weekly calls, then Sell to Open (1) March 11th - $4.00 call for every 100 shares you own.
The March 11th - $4.00 calls can be sold for .40.
Assuming you are filled at 40 cents, you will have collected $.70 per share in call premium against your long etf position.
