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.
Today, I would like to make another adjustment on the NCR position.
NCR reports today after the close and is selling off.
My suggestion is to Sell to Open the January $29 calls.
You should be able to sell them for $.60
Based on a sales price of $.60, the net debit is down to 30 cents.
This is more of a defensive move, as it brings the maximum value of the spread to $2.00, with a cost of 30 cents.
Still a decent risk to reward.
