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 time value on this week's call option on THC have been eroded to almost zero.
We were able to capture the high implied volatility going into earnings.
I am going to suggest you roll out this week's calls and sell the calls that expire in two weeks.
My suggestion today is this:
Buy to Close the November 10th-$14.50 call for 5 cents.
After you close this week's call option, then Sell to Open (1) November 24th - $14.50 call for every 100 shares you own.
The November 24th-$14.50 calls can be sold for $.35.
Based on the fills above, you will have collected $1.95 per share in call premium.
This alert applies only if you own THC stock.
