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.
I would like to capture some more option premium.
To do this, we will need to go out to next week.
My suggestion is to Sell to Open (1) September 16th – $19 call for every 100 shares you own.
The September 16th-$19 calls are quoted at $.15 to $.21, with the last trade at $.18.
Try and sell them for $.20.? If you cannot sell them for $.20, you should get filled at $.18.
Do this trade only if you are long the ETE stock.