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.
It has been over a month since we closed out the SNAP position and it looks to be setting up again for a buy.
As I write this, SNAP is trading around $14.54.
My suggestion is buy SNAP at the market.
Then Sell to Open the April 13th - $15 call for $.30.
If the calls are assigned, the return will be 5.2% for a week and one half.
Based on the tracking portfolio, I will be using a 400 share allocation or 5.8% of the portfolio.
Remember these calls expire one and one half weeks.