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.
Today I would like to make a suggestion on a mortgage insurer that has been beaten down.
That stock is Radian Group, Inc. (RDN)
It does not have weekly options, but they do have monthlies.
However, I am not going to suggest options at this moment.
My suggestion is to buy RDN at the market, which is $13.88 as I write this.
Use a 1% allocation, which based on a $100,000 portfolio, would mean about 360 shares. Round up to 400 shares in the event I suggest you sell calls against the position later.
