While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to the 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 suggested EW yesterday based on the fact that I was looking for a follow through to the downside.
After gapping to the upside, it is now back to above the upper band on the weekly chart.
I am going to suggest you close this position and take a small loss.
Here is how you close the position:
Sell to Close September $210 Put at $6.70
Buy to Close September $200 Put at $3.30
Based on these fills, the net loss is under $100.
We should get some great shorts in a few days.
