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.
Let's book our profit on the APA trade.
Sell to Close the July $45 call @ $.90
Sell to Close the July $42.50 put @ $2.55
If you followed the suggested trade size of a 4 lot on the callside and?an 8 lot on the put side, you walk away with a cahs return of $440?for 2 days.
That works out to 22% for a 2 day hold.
Let's book the profit and move on.
