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.
RIG has made a nice push and is trading around $9.48 as I write this.
It does appear to be a bit overbought in the short term, so I would like to take this as an opportunity to collect some call premium.
My suggestion today is to Sell to Open (1) March 29th - $9.50 call for every 100 shares you own.
You should be able to sell them for 35 cents.
These are the calls that expire in a week and one half.
