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.
I would like to make one more suggestion on an open?position.
My suggestion is to Sell to Open (1) January $13.75?call for every 100 shares you own against the ETE?position.
The January $13.75 calls are quoted at $.65 to $.85.?My suggestion is to try and sell them for $.75.
I know that that the $13.75 strike is less than our?purchase price, but you should have already collected?$.30 per share on this stock.
Even if the calls are assigned, it will produce a positive?return.
Do this trade only if you are long the stock.