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.
With the pullback in the market today, VIPS is selling off. As a result, I am going to suggest you book your profit on VIPS and move on.
VIPS is trading around $17.72 as I write this. And the March 16th - $17 call is quoted at $.70 to $.85.
Buy to Close the March 16th-$17 call for 80 cents or better.
After you close out the short call, sell youor shares at the market, which is $17.72.
Based on the prices above, you will earn a profit of $.53 per share. And if you will earn another $.35 per share by closing out the short $17 call.