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.
as I write this.
My suggestion today is the Sell to Open (1) September 30th $24.50 call for every October $22 calls you own.
The September 30th – $24.50 calls are quoted at $.25 to $.47, with the last trade at $.36.
Try and sell them for $.36. If you get filled at $.36, you will have collected $.58 per contract against the longer term calls.
The October $22 call’s cost basis will be reduced to $.81 with a maximum value of $1.50.
Based on the nominal portfolio, the sale will be 20 contracts.