February 26, 2019 - MDT Alert (EA)

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 like booking a quick one-day profit, especially when I am trading short-dated options.

My suggestion is to close the EA trade you put on yesterday.

Here is how you do it.

Sell to Close March 15th $95 call for $5.10.

Buy to Close March 15th $100 call for $2.55.

The net credit will be $2.55 and with a cost of $2.15 when you initiated the position yesterday, the overnight return will about 19% for the day.

The cash return on the suggested 4 lot is $160.

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