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.
TEVA has rebounded nicely after dropping off earnings last and is now a bit overbought on a short term basis.
I would like to take this as an opportunity to collect some call premium.
My suggestion today is to sell call options using the front week. These are the calls that expire in four days.
Sell to Open (1) May 11th - $19 call for every one hundred shares you own.
The May 11th - $19 call can be sold for 36 cents. I suggest you sell the calls and collect the cash.
This alert applies only if you are holding shares in TEVA.