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 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.
Today I would like to make a suggestion on a stock that reported last week.? They came in with a six cent beat.
That stock is Cowen Group, Inc. (COWN).
COWN does not have weekly options, but at this time I am going to suggest you initiate a position, and not sell calls against the position.
It appears to have dropped down to a support area. ?
My suggestion is to buy COWN at the market, which is $14.95.
Limit the position to 400 shares, which works out to about 6% of the nominal portfolio.
I will use a tight stop on the position.? I am looking for a technical bounce.