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 one more suggestion. The company is AMC Entertainment Holdings Inc. (AMC).
AMC traded as high as $34 per share last December and sold off and now trades around $15.
AMC does not have weekly options, but does have monthlies.
Buy AMC at the market, which is $15.27.
Then Sell to Open (1) October $16 call for every 100 shares you buy.
The October $16 call can be sold for $.43.
If the calls are assigned in two and half weeks, the return will be 7.6% for that period.
Limit the position to 400 shares or about 6% of the nominal portfolio.
