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.
AMC is trading around $14.20 as I write this. I would like to collect another round of call premium this month.
It looks likes we can collect $.30 by selling the March 29th- $15 call. And I am going to suggest you collect the premium.
Sell to Open (1) March 29th- $15 call for every 100 shares you own.
Assuming a fill at $.30, you will now have collected $3.10 per share in call premium on your AMC stock.
This is 20% of the purchase price.
On the VRX alert I just sent out, I mentioned the April 6th - $16.50 calls expire in one and one half weeks. This strike actually expires in two and one half weeks. Sorry for any confusion this may have caused.