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.
Range Resources Corp. (RRC) is a position I suggested back in January.
At the time we initiated the position, I suggested you sell call options against the position.
In fact, if you followed the alerts on RRC, you would have collected 70 cents per share in option premium.
When the position was initiated, it was based on the fact that I felt that the stock was bottoming.
And I still feel that way.
RRC is getting a strong bid today and I would like to add to the position.
Buy RRC at the market which is $9.20 as I write this.
I suggested a 400 share lot on the original position, which was 4.7% of the tracking portfolio.
Based on the current price, I suggest you add another 400 share lot, which is 3.7% of the portfolio.
So, if you followed the original alert and add to the position today, the risk is 8.4% of the tracking portfolio.
This will bring the average cost per share to $10.52 per share.