While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more
I would like to make a suggestion on a covered call.
And the stock is Box, Inc. (BOX). BOX doesn't report until November 24th.
I am going to suggest you buy the stock and sell the October monthly call option against the position.
BOX is trading around $17.65 as I write this. My suggestion is to buy BOX at the market.
Then Sell to Open (1) October $18 for every 100 shares you buy.
You should be able to sell them for 40 cents each.
Based on the nominal portfolio, limit the trade to 400 shares or 7% of the tracking portfolio.
If the calls are assigned next Friday, the return will be about 4.2% for 8 days.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more
With the $6 call on CLVS expiring Friday, I would like to suggest you sell another round of calls for this week.
CLVS is trading around $5.82 as I write this.
And the $6 call that expires on Friday, October 9th can be sold for $.20.
I suggest you collect the 20 cents.
Here is the trade.
Sell to Open (1) October 9th - $6.00 Call for every 100 shares you own.
You should be able to sell them for $.20 for every option.
If the calls are assigned this Friday, the return will be about 12% in total.
This alert applies to you only if you are long the shares in CLVS.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more
I am going to suggest you go ahead and book the profit on the MSFT debit spread.
MSFT is trading around $212.73 as I write this. And by closing the position today, the gain will be about 40% for 4 days.
Here is how you close the position:
Sell to Close October 16th - $207.50 Call for $8.20
Buy to Close October 16th - $212.50 Call for $5.00
The net credit will be $3.20 per spread. The debit when the trade was initiated was $2.30 per spread.
If you traded the suggested 6 lot, the cash return will be $.90 per spread or $540 for the 6 lot.
This works out to a gain of 40% for 4 days.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more