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. That stock is FireEye Inc. (FEYE).
FEYE is up 68 cents today, as I write this.
And as you know, it does have weekly options.
My suggestion today is to Buy FEYE at the market which is $16.70.
Then Sell to Open (1) February 1st - $17 Call for every 100 shares you buy.
The February 1st - $17 calls can be sold for $0.40.
If the calls are assigned next Friday, the return will be 4.2% for a week and one half.
Based on the nominal tracking portfolio, I suggest a buy in of 400
shares or a 6.7% allocation.
