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.
It looks like the VIX has taken out the resistance level of 13.28 quite solidly, which makes me believe this pullback should last for a few days.
Based on that, my suggestion is to collect some call premiun on ETE.
My suggestion is to Sell to Open (1) August 28th -$18 call for every one hundred shares you own.
The August 28th - $18 calls are quoted at $.27 to $.30.? Try and sell them for $.30.
These are the calls that expire this Friday.
These calls are at the money as I write this, and the premium is all time.? These calls will start to devalue by tomorrow.
Do this trade only if you are long the stock.
