November 25, 2016 - MDT Weekly Expiration Update (FEYE) & (FCX)

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.

If you have followed the recent trade alerts, you would have two positions that expire today.

The first is the short $14 call on FEYE.?? FEYE sold off on the earnings report from PANW.?

As I write this, it is trading around $13.34 or about 70 cents under the strike price.? Assuming there is no late day rally, the $14 call should expire worthless today and you will book the profit on the calls you sold.

I will look to sell more calls next week.

The second position is the short $14 call on FCX.

With FCX trading a good $2 over the strike, the short calls will be assigned.

And that is what I recommend.

Usually, I do like to roll out and collect more time premium, but with the run that FCX, and the metals have made, I expect a pullback.

And I would prefer to try and enter again after some profit taking sets in.

Enjoy your weekend!

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