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.
Yesterday, I suggested you sell an in-the-money call against the RRC position.
If you followed the alert from yesterday, you would have sold the February 22nd - $9 call for $1.00.
I am going to suggest you cover this position back.
Buy to Close the February 22nd - $9 call for $0.55.
This will give you a profit of $0.45 per contract and it frees the position up.
Assuming the stock bounces, I will look to sell more calls next week.
RRC may drift a bit lower, but it is oversold and I expect a bounce.