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 alert applies to you, if you still own shares?in GOGO.
GOGO is trading just under $19, at $18.77 as I write this.?I would like to use this as an opportunity to collect some ?call premium on the stock.
My suggestion to Sell to Open (1) January 8th – $21?call for every 100 shares you own.
They can be sold for $.40 and that is what I suggest you do.
These are the calls that expire next Friday.
The weekly average true range is about $1.82, so it possible?these calls could be assigned if GOGO moves that distance.
However, as the premium represents all time value, if?GOGO does not reach $21 by next Friday, the premiums?will be reduced to zero.