Today, I am also going to suggest you book the profit on the HOG debit spread.

One of the reasons is that the stock is approaching the midband on the daily chart and I do not want to run the risk of a pullback if it cannot clear it.

Here is how you close the position:

Sell to Close September 4th - $26.00 Call for $2.80

Buy to Close September 4th - $29.50 Call for $.65

The net credit will be $2.15 per spread. This results in a profit of $450 if you traded the suggested 5 lot.

The gain is 72% for 15 days.

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more

Today I would like to make a suggestion on a position we traded before.

But, today I am going to suggest a covered call.

The stock is ProAssurance Corp. (PRA).

PRA is trading at $16.45 as I write this.

My suggestion is to buy PRA at the market.

Then Sell to Open (1) August 21st - $17.50 call for $.40 for every 100 shares you buy.

Based on the nominal portfolio, limit the stock buy into 400 shares or 6% allocation.

If you buy 400 shares, you will then sell 4 calls.

These calls expire in two weeks.

The return for two weeks if the calls are assigned, will be 8.8%.