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.
AMC is trading just over $15 as I write this.?? I would like to collect another round of call premium this month.
They do report this Thursday, after the close, and because of this, the front month options carry a higher implied volatility than the later months.
I would like to take advantage of that.
Assuming you get filled at 55 cents, you will have collected $2.80 per share in call premium.
This is about 18% of the purchase price.
And if the calls are assigned, you will earn an additional 4.8%.
