Mad Hedge Fund Trader

May 19, 2020 - MDT Alert (OSTK)

Today,  I would like to make another recommendation on a stock that does have weekly options.  And I want to suggest a weekly covered call.

The stock is Overstock.com Inc. (OSTK).

OSTK reported already and reported a beat.

OSTK is trading around $17.64 as I write this.

Buy OSTK at the market at $17.64.

Then Sell to Open (1) May 22nd - $18 call for every 100 shares you buy.

You should be able to sell the May 22nd - $18 calls for $0.55.

Limit the stock purchase to 300 shares or 5.2% of the portfolio. If you buy 300 shares, it would mean you would sell 3 calls.

If the calls are assigned this Friday, the return will be 5.2% for 4 days.

Mad Hedge Fund Trader

May 19, 2020 - MDT Alert (HOG)

HOG is trading around $22.25 as I write this.  I would like to suggest you sell calls that expire this Friday.

My suggestion today is this.

Sell to Open (1) May 22nd - $23 call for every 100 shares you buy.

You should be able to sell them for $0.45.

These are the calls that expire in four days.

This alert applies only if you bought shares in HOG when I suggested it on May 5th.

Mad Hedge Fund Trader

May 19, 2020 - MDT Pro Tips A.M.

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

Mad Hedge Fund Trader

May 18, 2020 - MDT Alert (IQ)

With the market popping this morning, IQ is trading to the upside.

I am going to suggest you book the profit on the stock.

This is primarily because they report this afternoon and I would prefer not to have an adverse earnings report work against the position.

Sell IQ at the market, which is $18.17.

The gain on the stock will be $219, if you traded the suggested 300 share lot.

If you add in the call premium collected, the overall return will be 6% for 10 days.

Mad Hedge Fund Trader

May 18, 2020 - MDT Pro Tips A.M.

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

Mad Hedge Fund Trader

May 15, 2020 - MDT Pro Tips A.M.

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

Mad Hedge Fund Trader

May 14, 2020 - MDT Pro Tips A.M.

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

Mad Hedge Fund Trader

May 13, 2020 - MDT Alert (SPY)

I was anticipating we would get a little bounce in the market that would allow us to close the call side of the position I suggested yesterday.

But, that is not materializing.

Therefore, let's go ahead and close the call side.

Sell to close (1) May 29th 292 call for $3.20

This results in a loss of $230 if you traded the suggested 1 lot.

Overall, the position is still an overnight return of 27%.

Mad Hedge Fund Trader

May 13, 2020 - MDT Alert (SPY)

I am going to suggest you close the put side of the SPY trade I recommended yesterday.

Sell to close (2) May 29th 291 puts for $9.10.

The profit on each put will be $340 or 60% in one day.

The total cash profit if you traded the suggested two lot will be $680.

Keep the call side in place for now.

Mad Hedge Fund Trader

May 13, 2020 - MDT Pro Tips A.M.

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

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