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.
As you are probably aware, US Steel (X) has made a strong run as of late.
And because of that, it appears to be a bit overbought.
I would like to take this as an opportunity to collect some call premium.
My suggestion today is to Sell to Open (1) March 18th - $15.50 call for every 100 shares you own.
The March 18th - $15.50 calls are quoted at $.36 to $.38 as I write this. Try and sell them for $.37.
These calls expire this Friday, so X would have to move up about $1.20 for the calls to be assigned.
