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.
KMI reports tomorrow after the close and quite frankly, if the front week options had a better premium, I would suggest selling those calls against the September call position.
Because they don't carry a higher implied volatility, I am going to suggest you sell the position ahead of earnings.
Sell to Close the KMI September for $1.50.
Based on a fill at $1.50, you will earn 40 cents per contract or 36% for holding these calls for two weeks.
Depending upon what KMI reports, I will look to put the position back on.
Based on the suggested 10 lot, the cash return is $400.