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.
I suggested selling the $29 calls on NCR because they reported last night and because of the sell off into earnings.
My suggestion is to cover that position back.
They are quoted at $.40 to $.65, with the last trade at $.55.
My suggestion is to try and buy them at $.50.
You can always raise your bid to $.55.
Assuming you buy them for $.50, you will book a small 10 cent profit per contract.
However, the upside remains unlimited.? And the debit is reduced to $.80.