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.
Today I would like to make a suggestion on a short term call.
The stock is Delta Airlines Inc, (DAL). DAL is trading around $57.69 as I write this. And it does have weekly options.
My suggestion today is to buy to open the April 26th - $57.50 calls for $.58.
Based on the nominal tracking portfolio, limit the trade to an 8 lot or less than .05% of the portfolio.
This is because these are extremely short-dated options.
