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.
Let's close the IRBT trade we put on yesterday.
Sell to close the November 8th $51.50 put for $3.15.
I suggest you book the overnight windfall.
The return is 200% for one day.
If you traded the suggested 5 lots, the total cash return is $1,050 on an investment of $525.
