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.
This alert applies to you if you are still holding the May debit spread on CLW.
The position was originally entered with the long May $20 call and the sale of the May $22.50 call.
I am going to suggest you close the short leg of the spread.
This is because it appears to be getting a bid.
Buy to Close the May $22.50 call for $0.40.
This results in a profit of $60 per option.
The profit, if you followed the alert and traded a 6 lot profit, will be $360.
This will also not cap the profit on the $20 calls.
