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.
FEYE reported and gapped down off their earnings. This is one of the reasons I suggested selling the front week inflated call options.
You just never know what a stock will do going into earnings.
Based on the gap, FEYE is now oversold and I see no reason not to buy back the calls.
My suggestion is to Buy to Close the August 3rd-$16 calls for 2 cents. You may have to move the price up a little, but I?would rather cover this position because it frees us up to sell more calls if FEYE has a decent bounce.
If you close the calls for 2 cents, your profit will be $.68 per option.