July 19, 2019 - MDT Alert (WDC)

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.

Suffice it to say that we were a bit early on the entry in WDC. But, this again shows why risk is limited when doing short term option trades.

I suggest you close the position and recoup some of the investment.

Here is how you do it:

Sell to Close July 19th - $52.50 call @ $0.50

Buy to Close July 19th - $55.00 call @ $0.01

This will you allow you to recoup $0.44 of the position.

I don't suggest you keep the short call open and for one cent you are better off closing the whole position.

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