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.
SNAP popped up a bit today and is trading around $14.90 as I write this.
I would like to use this as an opportunity to collect some call premium.
My suggestion today is to Sell to Open (1) April 27th - $15 call for every 100 shares you own.
You should be able to sell them for $.35.
Assuming a fill at $.35, you will have collected $.65 in call premium on this new recommendation on SNAP.
If the calls are assigned, the return will be 8%.
Remember these calls that next Friday.