While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to the 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 am going to suggest you close out the putside of the XLNX straddle from the other day.
Sell to close (2) November 15th - $95.00 puts for $1.90
This will end up being a profit of $124 if you trade the 2 lots as suggested.
Keep the callside in place. The hedge will help to offset the cost of the long calls and reduce the risk on that side of the trade.