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 suggested an uneven straddle on BERY because the stock was trading under its lower extreme band on the daily chart.
This is because it does not mean that the stock could turn up immediately.
But, I do think it is about to turn now.
Therefore, lets book the profit on the putside. And stay long on the calls.
Sell to Close the September $47.50 puts at $2.80.
This will give you a profit of $1.30 per contract. Based on the suggested 3 lot, the total cash profit will be $390.
And we have until the third Friday in September for the stock to rally.
Also, SYMC is trading around $21.29 as I write this. This is above the strike price. Leave the position alone. If the stock settles above $21 at the close, you will see your shares at that price.