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

CLVS is back to the entry price and I would like to take this as an opportunity to collect some call premium.

I am going to suggest you sell the front week $7.50 call on the stock.

Here is the trade:

Sell to Open (1) June 26th - $7.50 Call for every 100 shares you own.

You should be able to sell them for $.25 per every option.

This will bring the call premium collected on this position to 50 cents per share.

If the calls are assigned this Friday, the return will be 9.4% for less than a month.

Of course, this alert only applies to you if you own shares in CLVS.

Today, I would like to make a suggestion on a stock I mentioned on one of John's webinars. In fact, I suggested it was a buy last week.

And I think we now have the entry.

The stock is Bristol Myers Squibb Co. (BMY).

BMY is trading at $57.33 as I write this and it does have weekly options.

I am going to suggest you trade the July 24th series. This should give us some time to see if BMY follows through as I expect.

My suggestion is going to be a debit spread and here is the trade:

Buy to Open July 24th - $57 Call for $2.44

Sell to Open July 24th - $63 Call for $0.60

The net debit will be $1.84 per spread. The maximum gain on the trade will be $3.16 per spread or 172% return.

Based on the tracking portfolio, limit the buy in to 6 spreads or 1.1% of the tracking portfolio.

I am suggesting a debit spread because the long calls are slightly out of the money.