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.
I want to make another suggestion today. This will be to sell calls against the FEYE position.
FEYE is trading around $16.83 as I write this.
You should be able to collect $0.25 per option by selling the April 12th - $17.50 calls.
And I am going to suggest you do just that.
Sell to Open the April 12th - $17.50 call for 25 cents. Sell one for every 100 shares you own.
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 80 cents.