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.
I am going to suggest you book your profit on the BAC?position. Even though you bought a lot of time on this?position, BAC does report next week and I would rather?not sit through a pullback in the event something?goes wrong.
So, my suggestion today is this:
Sell to Close November $28 call @ $2.29
Buy to Close November $31 call @ $.80
The net credit will be $1.49. And with a net debit of $1.16 when?the position was initiated, the gain will be $.33 per spread.
The end result is a gain of 28% for eight days.
The cash return based on the nominal portfolio is $330.
