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 would like to make a suggestion on a stock that does have weekly options.
The stock is Range Resources Corp (RRC).
RRC is trading around $11.85 as I write this.
My suggestion will be to buy RRC at the market.
Then Sell to Open January 25th - $12 call for every 100 shares you buy.
These are the calls that expire in two weeks.
Try and sell them for 30 cents.
If the calls are assigned, the return will be 3.8% for two weeks.
Based on the tracking portfolio, I suggest you limit the trade to 400 shares or 4.7% of the portfolio.
