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.
Today, I would like to make a suggestion on a stock in our open positions.
That stock is SNAP.
If you followed the original alert on SNAP, then you know how much of a roller coaster this deal has been.
The stock dropped as low as $5 per share before staging the comeback.
If you bought the stock at the time of the original alert, you would be about flat, after factoring in the call premium collected on this position.
This is a position I am looking to add to on a pullback and I do think we will see before it makes another leg higher.
I would like to use the asset to collect some more call premium.
My suggestion today is this:
Buy to Open May 4th $11.50 call for $0.13
Sell to Open May 4th $10.40 call for $0.68
The net credit will be $0.55 per spread.