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.
On a day where the market is selling off, SFLY seems to be the only stock showing some legs.
Because of that, I do not want to wait to close the long $40 put position.
Sell to Close the February $40 puts at the market. You should be able to sell them for $.80.
This will result in a loss of about $1.10 per contract.
Also, try and sell the $37.50's for $.20.
SFLY is not breaking as I expected.
