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.
It is oversold on a short term basis, so I would like to use this as an opportunity to close the short $23.50 calls that expire next week.
Had you followed the alert from last week, you would have sold the $23.50 call that expires next week.
My suggestion today is to Buy to Close the October $23.50 call for 7 cents.
This results in a profit of 18 cents per contract.
If CIEN bounces back, I will try and sell another round of calls against the position.