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.
I want to make one more suggestion today. And it is on a stock we traded in the past as well.
That stock is KMI.
KMI is sitting right at the lower band on the daily chart and is trading around $15.18 as I write this.
I am not going to suggest a buy write strategy on this deal, but an out right call purchase.
My suggestion is the Buy to Open the September $15 call for $1.10.
Limit the buy in to 10 calls or about 1% of the nominal portfolio.
Because KMI has weekly options, if it begins to falter, I will suggest you sell short term calls against the long dated calls.