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.
I would like to make a suggestion on a 3D printing company, DDD.? DDD has weekly options which is a feature I like.
weekly covered calls.
My suggestion today is to buy DDD at the market, which is $15.16 as I write this.
Then Sell to Open (1) December 16th - $15.50 call for every 100 shares you buy.
These are the calls that expire this Friday.
You should be able to sell the December 16th-$15.50 for $.24.
Based on the tracking portfolio, I will use an allocation of 500 share buy in.
If the calls are assigned this Friday, the return will be 3.8% for 5 days.
