August 28, 2015 - MDT - Weekly Expiration Update

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 follow up to this morning's update.? CIEN is trading about 71 cents in the money.

Most likely the calls will be assigned and you will sell your shares at $22.

Your broker will handle this for you.

The net result is that you will book a gain of 2.3% for 3 days.

The other open position is the short $19 call on VIPS.

VIPS is flirting with the strike price and has traded above and below it all day.

Even though expiration is this afternoon, the $19 calls are holding some value.

Therefore, my suggestion is to leave the position alone and wait to see where VIPS settles this afternoon.

If it does close above $19, the calls will be assigned and you will sell your shares at $19.

If it settles under $19, then you will keep your shares.

In either scenario you will keep the premium for the calls you sold.