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.
AMC has made a nice run these past few days, but I do believe it is a bit overbought on a short term basis.
I would like to take this as an opportunity to collect some call premium.
As you know, AMC does not have weekly, so we will sell the December monthlies.
My suggestion today is to Sell to Open (1) December $16 call for every 100 shares you own.
Try to sell them for $1.20 or better.
If this is short term top, I will look to close the short calls out at a profit. This also protects the downside for $1.20.
