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 short calls on VRX expired Friday and I mentioned yesterday that I would like to sell more calls against this position.
And today I am going to suggest exactly that.
Sell to Open (1) April 20th - $16.50 call for every 100 shares you buy. The April 20th - $16.50 call can be sold for $.29.
These calls expire next Friday.
This will bring the call premium collected on this position to $.79.
If they are assigned in two weeks, the return will be 5.4%.