December 26, 2018 - MDT Alert (TEVA)

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 am going to make a suggestion on a stock I recommended earlier in the year.

That stock is Teva Pharmaceuticals Industries LTD. (TEVA).

Like a whole host of stocks at the moment, TEVA traded under its lower band on its daily chart and today is recapturing that level.

TEVA does have weekly options which is a nice feature.

My suggestion today is to buy TEVA at the market which is $15.30.

Then Sell to Open (1) January 4th - $15.50 call for every 100 share you buy.

You should be able to sell them for $0.45. These are the calls that expire next Friday.

If the calls are assigned, the return will be 4.24% for a week and one half.

I suggest you limit the purchase to 400 shares or 6.1% of the nominal
portfolio.

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