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.
