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.
With the market getting a strong bounce this morning, I would like to take this as an opportunity to sell calls against the FCX position.
FCX is trading around $13.20 as I write this.
My suggestion today is this.
Sell to Open the April 12th - $13.50 call for 25 cents.
These are the calls that expire in two weeks.
My suggestion is to go ahead and take the premium.
This will bring the premium collected on this position to 73 cents.