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 one more suggestion.
Like DIS, it does have weekly options.? And they reported a shade over a week ago.
This stock made quite a few headlines and not for good reasons.
It topped out over $260 and now trades under $20.
But I feel as if the bottom is in.
So, I am going to suggest a weekly covered call on the stock.
The stock is Valeant Pharmaceuticals Intl, Inc. (VRX).
My suggestion is to buy VRX at the market, which is $13.69 as I write this.
Then Sell to Open (1) May 26th – $14 call for every one hundred shares you buy.
These are the calls that expire next Friday.
They are quoted at $.39 to $.41.? Try and sell them for $.40.
Limit this trade to 500 shares or 6.8% of the tracking portfolio.
If the calls are assigned next Friday, the return will be 5.1% for a week and one half.