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.
Today I would like to make a suggestion on a company that has already reported. That company is Western Digital Corp. (WDC).
WDC reported back on July 27th with a 7 cent beat. So, we don't have to be concerned with an upcoming earnings date.
I think WDC has made a short term bottom and is due to bounce.
This is a short term set up and I do not want to buy a lot of time.
Because of that, I suggest limiting risk by limiting the number of contracts you buy.
My suggestion is to Buy to Open the August 18th - $82.50 calls.
The August 18th - $82.50 calls are quoted at $1.41 to $1.44.
Try and buy them for $1.44.
Because we only have a short period of time to be right, I suggest you limit this trade to four contracts, which is .57% of the nominal portfolio.
