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 would like to adjust the NCR position again.
Yesterday, you should have closed out the short January $32 call at a profit of around $.80.
The January $32 calls have popped up and I would like to put the short call back on.
The last trade on the January $32 calls was at $.95.
My suggestion is to Sell to Open the January $32 calls for $.95.
Sell one for every January $27 calls you own.
This will bring the net debit down to $1.25.
The maximum value of the spread will be $5 or a four to one return.
