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.
It appeared that the buying yesterday was real and would signify a short term bottom in the markets.
Apparently, that is not the case with the market failing today.
I don't want to hold onto this position and feel we are better off closing it and taking a small loss. We can always put it back on if the market appears to be bottoming.
To close the trade, here is what you need to do:
Buy to Close December $12.00 call for $.50
Then sell the Stock at the market which is $11.62.
This will result in an overall loss of $56 if you traded the suggested 400 shares.
