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.
My suggestion to Sell to Open the March 11th-$4.00 call against the DUST position, was more of a hedge suggestion.? The intention was not to get assigned at the $4.00 price.
My suggestion is to Buy to Close the March 11th - $4.00 short calls.
The last trade was at $.20, but quite frankly, the bid / ask is $.20 to $.25.? You should be able to close the position for $.25.
And my suggestion is you do just that.
Based on a sale of 40 cents, you should net 15 cents per share.
If DUST gets a bounce from here, I will look to sell the $4.50 calls for next week.
