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.
I am going to suggest you book your profit on the short term WDC put debit spread. Even though we have 3 more days until expiration, I prefer to close early and take the profit, instead of running the risk of a move against us.
Here is how to close the position.
Sell to Close October 25th - $58.50 put at $1.35
Buy to Close October 25th - $56.00 put at $0.33
This will result in a credit of $1.02 per spread. The cost to place the trade was $0.68 per spread.
The end result will be a profit of $0.34 per spread.
If you traded the suggested 8 lot, the total cash return will be $272 or a return of 50% for two days.