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.
AMC has been bucking the trend of the market recently. It is trading just above $15 as I write this. And yesterday it had a nice pop.
I would like to use this as an opportunity to sell calls and collect some option premium.
My suggestion today is to Sell to Open (1) April 20th - $15.50 call for every 100 shares you own.
The April 20th call can be sold for $.60.
These are the calls that expire in two and one half weeks.
By collecting 60 cents per share, you will now have collected $3.70 per share in call premium on the AMC position.