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.
Call me what you want, but I prefer to pull the MCD trade off before the the Fed announcement today.
The result will be a profit of 46% overnight.
Here is how you close the trade ...
Sell to Close November 1st - $192.50 call for $2.30
Buy to Close November 1st - $195 call for $0.75
The net credit will be $1.55 per spread.
There will be more opportunities after the Fed announcement.
The overnight profit will be about 46%.
