March 6, 2018 - MDT Alert (VIPS)
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.
VIPS has sold off a bit today and I would like to take this as an opportunity to roll out this week's short call.
My suggestion today is to Buy to Close March 9th - $17.50 calls you sold on February 28th for 15 cents.
After you close the short call position, then Sell to Open (1) March 16th - $17.00 call for every 100 shares you own.
The March 16th - $17 calls are quoted at $1.10 to $1.25. Try and sell them for $1.15.
This alert closes out the front week calls and rolls them to next Friday.
And based on the fills above, you will book a profit of $1.50 per share for closing this week's calls and pick up another $1.15 by selling next week's calls.
If next week's calls are assigned at $17, you will lose 19 cents per share, but you will have benefited $2.65 per share by selling the call options.
