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.
Today I would like to make a suggestion on another stock with weekly options.
The stock is CIENA Corp. (CIEN).
CIEN is trading right around $22 at $21.91.
My suggestion is to buy CIEN at the market.
Then Sell to Open (1) August 28th - $22 call for every 100 shares you buy.
The August 28th - $22 calls are quoted at $.36 to $.44 with a last trade of $.42
Try and sell them for $.42.? You can always reduce your bid.
Use a full allocation for this position, which means a purchase of 400 share.? (Round down because of market conditions).
If the calls are assigned this Friday, the return will be 2.3% for 3 days.