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 close the MA debit spread.
Here is how you do it:
Sell to Close September 20th - $272.50 Call for $6.25
Buy to Close the September 20th - $277.50 Call for $3.20
The net credit will be $3.05 per spread. With a cost of $2.25 per spread, this means each spread will earn $.80 per spread.
If you traded the suggested 3 lot, the total cash gain will be $240.
Based on an investment of $675, this works out to a return of 36% for 3 days.
