April 26, 2019 - MDT Alert (CNC)

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.

CNC has made a nice push since I suggested it three days ago. But, it does appear to be coming up against some short term resistance.

Because of this, I am going to suggest you book your profit.

Here is how to close the trade:

Sell to Close June $50 call for $4.40

Buy to Close June $55 call for $2.00

The net credit will be $2.40 per spread. The result is a gain of 80 cents per spread for a total of $450 if you traded the suggested 6 lot.

The gain is 50% for three days.

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