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 stock we have traded before. And that stock is Snap Inc. (SNAP).
As you know, SNAP has weekly options and I would like to make a suggestion using the weeklies.
Buy SNAP, at the market, which is $15.20 as I write this.
Then Sell to Open (1) September 15th-$15.50 call for every 100 shares you buy.
The September 15th - $15.50 calls are quoted at $.27 to $.28. Try and sell them for 28 cents.
Limit the trade to 400 shares, or 6% of the nominal portfolio.
If the calls are assigned, the return will be 3.7% for five days.