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.
This is a quick follow up to this mornings update regarding the open position on VNR.
VNR is hovering right around the $9 strike price as I write this.
It had a low today o $8.56 and a high of $9.01.
At this point, my suggestion is going to be to leave the calls alone and let's see where VNR settles this afternoon.
If it closes above $9, your calls will be assigned and you will sell your shares for that price.
If it closes under $9, you will keep your shares.
In both scenarios, you will keep the premium you collected when you sold the calls.
If the calls are assigned, the return will be about 6% for three weeks.
