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.
Freeport-McMoran (FCX) did follow through a bit from yesterday's strong price action.
I do believe it will continue to follow through a bit more, but when we can book a profit of 50% in one day, I will take it.
Let's go ahead and close the position. This is how you do it:
Sell to Close March 8th - $11.50 Call for $0.75
Buy to Close March 8th - $13.00 Call for $0.16
The net credit will be 59 cents per spread. The cost was 39 cents, which gives you a profit of 20 cents per spread.
If you traded the suggested buy in of a 15 lot, the overall cash return will be $300 for one day.
