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 am going to suggest you close the long debit position on CRM.
If you followed the alert from the other day, you would be long the $157.50 call and short the $160 call that expires tomorrow.
I don't want to wait around until tomorrow because we could get a pullback.
Here is how you close the trade ...
Sell to Close November 8th - $157.50 call for $3.15
Buy to Close November 8th - $160.00 call for 1.20
The net credit will be $2.00 per spread. Because you paid $1.00 for the spread. the profit is $1.00 per spread or $600 if you traded the 6 lot that was suggested.
Keep the short $155 put in place.
Even if that expires worthless, the overall profit will be $345.
