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 suspect that QCOM will follow through a bit more, but when we can book a profit of almost 50% in one day, my suggestion is to take it.
Another reason is that we did not buy a lot of time when we put on this position yesterday.
My suggestion is this:
Sell to Close December 7th - $55 call for $2.50
Buy to Close December 7th - $58 call for $1.00
The net credit will be $1.50 per spread.
The result will be a profit of $0.45 per spread or $360 if you traded the suggested 8 lot.
The result is a return of 42% for one day.
