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.
Today I want to make one more suggestion on an open. And that is on Owens Illinois, Inc. (OI).
OI is reversing nicely and I am going to suggest you book your profit on the short February $22 call.
You can buy them back for $0.15 and that is what I suggest you do.
This will result in a profit of $0.40 per contract. And it will mean there is now unlimited profit potential on the long $19 calls.
Of course, this only applies if you are short the February $22 calls.