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 a suggestion on a stock that I have mentioned a few times before on various webinars for John.
That stock is Celgen Corp. (CELG).
CELG is trading around $88.81 as I write this. And it has been consolidating for about 10 days.
Because of the price of the stock, I am going to suggest you initiate the position with a debit spread to reduce the risk.
My suggestion today is this:
Buy to Open November $90 Call for $3.20
Sell to Open November $95 Call for $1.47
The net debit will be $1.73.
The maximum profit will be almost a 200% return.
Limit the position to a six lot or about 1% of the nominal portfolio.
