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.
This is a quick follow up to the short $15.50 call on US Steel (X) that expires today.
X has been above and below the strike price all day and, as I write this, it is trading just over the strike at $15.69.
The calls are still holding a little time value.
My suggestion is to leave the position alone and see where X settles today.
If it closes above $15.50, your calls will be assigned and you will sell your shares at $15.50.
If it closes under $15.50, you will keep your shares.
In either scenario, you keep the premium you collected when you sold the calls.
