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.
My suggestion today is this ...
Sell to Close January $50 call for $2.10
Buy to Close January $55 call for $.40
You will net about $1.70 per contract on the trade.
Based on a debit of $1.25 per contract, the net result will be $45 per contract or $450 if you traded the
recommended lot size.
Book the gain of 36% for a week.