While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, 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.
FDX reported back on the 17th and moved up almost 12% on the news.
This suggestion is based on the move continuing.?
I do not suggest you buy the front week options, but rather a few weeks of time.
My suggestion is to Buy to Open the April 22nd – $162.50 call for $2.40.
Then Sell to Open the April 22nd – $170 call for $.55.
This trade results in a net debit of $1.95, with a maximum return of $5.55.
Our stop will be if FDX closes under $160.38.
Limit the trade to a 5 lot or a 1% allocation.