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.
MDR has moved up and is trading around $9.50 as I write this.
I would like to take this as an opportunity to collect some call premium.
Sell to Open (1) February $10 call for every 100 shares you own.
These are the monthly calls that expire next Friday.
You should be able to sell them for 25 cents.
Of course, this alert only applies if you bought the shares.
If these calls are assigned, the return will be 10%. This is in addition to the call premium you should have already collected.
