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.
DIN is coming up against some short term resistance, so I am going to suggest you book your profit on the deal.
Here is my suggestion today:
Sell to Close the December $40 call at $3.90 and
Buy to Close the December $45 call at $1.30
The net affect will be a profit of about $540 on the suggested 4 lot. Based on the original investment of $960, assuming you traded the suggested 4 lot, it works out to a return of 56%, for a two week holding period.
If DIN does pullback, I may look to put back the trade back on.
