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.
The first is the short $14 call on FEYE.?? FEYE sold off on the earnings report from PANW.?
As I write this, it is trading around $13.34 or about 70 cents under the strike price.? Assuming there is no late day rally, the $14 call should expire worthless today and you will book the profit on the calls you sold.
I will look to sell more calls next week.
The second position is the short $14 call on FCX.
With FCX trading a good $2 over the strike, the short calls will be assigned.
And that is what I recommend.
Usually, I do like to roll out and collect more time premium, but with the run that FCX, and the metals have made, I expect a pullback.
And I would prefer to try and enter again after some profit taking sets in.
Enjoy your weekend!
