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
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 going to suggest you close the long side of the CTXS debit spread.
CTXS is trading around $140.98 as I write this and the August 21st $140 call is holding a value of about $1.85, which is about $1 of time value.
The problem is any adverse move against the position will radically impact the value, so I suggest you close today.
Here is the suggestion:
Sell to Close August 21st - $140.00 Call for $1.85
The overall loss if you traded the suggested 5 lot is $400, which includes the profit on the short $145 call.
I would like to make a suggestion on a debit spread and the stock is Cerner Corp. (CERN).
CERN reported on July 29th with a small earnings beat, so we do have to be concerned with an upcoming earnings release.
CERN is trading around $72 as I write this.
My suggestion is to trade the September monthly options that expire on September 19th.
This gives the stock about two weeks to make a move.
Here is how you open the position:
Buy to Open September 19th - $72.50 Call for $1.75
Sell to Open September 19th - $77.70 Call for $0.40
The net debit will be $1.35 per spread.
Based on the tracking portfolio, I suggest you limit the trade to an 8 lot or 1% of the portfolio.
The maximum gain on a five lot would be $2,920.
Limit the risk because the options are slightly out of the money and I am suggesting the front month option series.
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