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.
Salesforce.com, Inc. (CRM) is breaking down and I want to add a hedge to the position.
I suggest a 1/2 hedge and here is the suggestion.
Buy to open November 8th $155 put at $0.85.
The suggestion yesterday was for a 6 lot based on the nominal portfolio.
For this position, use a 3 lot.
In other words, buy 1/2 the puts as the long debit spread you placed.