December 16, 2019 - MDT Alert (CASY)

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to the 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.

I would like to make one more suggestion today.

This one will be a debit spread. The stock is Casey's General Stores, Inc. (CASY).

CASY reported last week and sold off after the earnings report.

It looks like the stock is getting the bounce I expect.

I do want to buy a little time and suggest you go out to the January expiration day.

Here is the suggestion:

Buy to Open January 17th - $155.00 call for $3.90

Sell to Open January 17th - $160.00 call for $1.80

The net debit will be $2.10 per spread. Based on the nominal portfolio, I suggest you limit the trade to 4 spreads or about 0.8% of the portfolio.

The maximum gain on the trade if CASY trades above $160 by January 17th is about 142%.

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