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.
The markets have made a strong move today after the two selling climaxes we have seen.
At this point, I would prefer to book a small profit on the deal and not let the premium erode over the weekend.
So, my suggestion today is to Sell to Close the August 7th $20.50 put at $2.00.
They are being quoted at $1.98 to $2.05, so you should be able to get filled at $2.00.
This give you a profit of 9.2% in 4 days.
We will look for other opportunities next week.
