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.
CNC has made a nice push since I suggested it three days ago. But, it does appear to be coming up against some short term resistance.
Because of this, I am going to suggest you book your profit.
Here is how to close the trade:
Sell to Close June $50 call for $4.40
Buy to Close June $55 call for $2.00
The net credit will be $2.40 per spread. The result is a gain of 80 cents per spread for a total of $450 if you traded the suggested 6 lot.
The gain is 50% for three days.
