While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more
I am not 100% sold on the rally that QRVO has been experiencing.
As a result, I am going to suggest you close the call side of the straddle I suggested last week.
You should be able to collect $9.80 by selling the October 16th- $125 call and I suggest you book the profit on this position.
Hold the put side for now.
The sale of the October 16th - $125 call will result in a gain of $410 if you traded the suggested one lot.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more
I am going to suggest you book your three-day profit on BMY.
Go ahead and close the position.
Here is how you do it.
Sell to Close October 9th - $59 Call for $2.00
Buy to Close July 24th - $63 Call for $.35
The net credit will be $1.65 per spread. With a cost of $1.15, this results in a profit of $.50 per spread.
If you traded the suggested 8 lot, the cash return will be $400.
This works out to a return of 43% for 3 days.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more
Today, I would like to make a suggestion on another stock we traded in the past.
That stock is Bristol Myers Squibb Co. (BMY).
BMY is sitting right at the midband on the daily chart and is making a push higher.
BMY is trading around $59.20 as I write this and it does have weekly options.
I am going to suggest you trade the October 9th series. This should give us some time to see if BMY follows through as I expect.
My suggestion is going to be a debit spread and here is the trade:
Buy to Open October 9th - $59 Call for $1.45
Sell to Open July 24th - $63 Call for $0.30
The net debit will be $1.15 per spread. The maximum gain on the trade will be $2.85 per spread or 247% return.
Based on the tracking portfolio, limit the buy in to 8 spreads or .9% of the tracking portfolio.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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. Read more