December 20, 2017 - MDT Alert (UNIT)
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 that I have mentioned a few times on past webinars.
That stock is Uniti Group Inc. (UNIT).
What makes this trade compelling is this.
UNIT announce a 60 cent per share dividend paid on January 12, 2018, for shareholders of record on December 29, 2017.
My suggestion is to buy UNIT at the market, which is $17.
Then Sell to Open (1) January $17.50 call for every 100 shares you buy.
The January $17.50 calls are quoted at $.25 to $.40. Try and sell them for $.35.
The calls could be assigned if the shares are trading above $17.50 on the 26th.
If the shares are under $17.50, then you should collect the dividend, as well as the call premium.
