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 want to make a suggestion on a stock we traded in the past. It does have weekly options, but I will not suggest a weekly option position today.
The stock is 3D Systems Corp (DDD).
My suggestion today is to buy DDD at the market, which is $11.97 per share.
Then Sell to Open the December $12.00 calls for $0.70.
These are the calls that expire on December 21.
If these calls are assigned in two weeks, the return will be about 5.8%.
Because of the recent volatility, I suggest a buy-in of 400 shares or 4.8 % of the nominal portfolio.
