While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to the 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. In fact, the last time I suggested a trade on this stock was on January 23rd, 2019.
The stock is FEYE.
My suggestion today is to buy FEYE at the market which is $17.18.
Then after you buy it, Sell to Open (1) March 8th - $17.50 call for 30 cents.
If the calls are assigned next Friday, the return will be 3.6% for two weeks.
Based on the tracking portfolio, I suggest a 400 share buyin which works out to 6.8% of the tracking portfolio.