As I mentioned in this morning's update, I suggested I would recommend collecting more call premium on the CLVS position.

As such, I am going to suggest you sell the $6 call that expires this Friday.

Here is the alert:

Sell to Open (1) October 23rd - $6 call for every 100 shares you own. You should be able to sell them for 25 cents.

This brings the total call premium collected on this position to 85 cents per share or 14.7% of the purchase price.

This alert applies to you only if you own shares in CLVS.

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

MSFT has made a nice run since I suggested the trade 7 days ago.

As I write this, it is trading around $218.65 or almost $4 above the short strike.

Because of this, I am going to suggest you book your profit on the position.

Here is how you close the position:

Sell to Close October 23rd - $210.00 Call for $9.50

Buy to Close October 23rd - $215.00 Call for  $5.80

The net debit will be $3.70 per spread. 

The initial cost of the position was $2.20 per spread.  Closing at the prices above will result in a profit of $1.50 per spread.

I would usually just suggest you let the $6 call on CLVS expire today, but with next week being a short week, I am going to suggest you cover back this week's call and sell next week's.

With the Columbus Day Holiday on Monday, the markets are close, so you are only selling 4 days worth of call premium.

I don't suggest you leave this week's call open and given the fact that it can be bought back for a penny, that is what I suggest you do.

So, Buy to Close the October 9th-$6 call for one cent.

After you close this week's call, then execute this trade:

Sell to Open (1) October 16th - $6 call for every 100 shares you own. You should be able to sell them for 15 cents.

I usually like to capture more weekly premium, but with a short week, the price has been reduced.

This brings the total call premium collected on this position to 10.4% of the purchase price.

This alert applies to you only if you own shares in CLVS. Enjoy your long weekend!