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.
RIG has jumped pretty strongly today and is up about 8%.
But short term, it is overbought and I would like to take this as an opportunity to collect some cash.
So, here is my suggestion.
Sell to Open (1) May 3rd - $9.50 call for every 100 shares you own.
You should be able to sell the May 3rd - $9.50 calls for $0.42.
This will bring the premium collected on this position to $1.53 per share.
This alert applies only if you own the stock.
