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.
VNR seems to be the only pipeline that has not made a jump this week.
I believe the reason is that most investors feel they will cut their attractive dividend.
Having said that, they did announce their recent dividend of $.1175 per share paid on December 15, 2015.
With VNR trading around $3.00, it would mean that the stock would yield 47%, if they can maintain their dividend.
What I do find attractive is that the December monthly options that expire next week are quoted at $.20 to $.50, with the last trade at $.30.
My suggestion is to buy VNR at the market, which is $2.97, then Sell to Open the December $3 calls at $.30.
Limit the buy to 1,000 share or only a 3% allocation based on the nominal portfolio of $100,000.
If the calls are assigned next week, the return will be about 10% for a shade over one week.
I am banking on the fact that they will not announce any cuts before the December expiration.
