October 25, 2019 - MDT Alert (DVA)

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.

Today, I would like to make an adjustment to the DVA strangle.

I am going to suggest you close the November 15th- $60 call.

This allows you to book a profit on this position and keep the position open to sell another round if DVA bounces.

Here is the trade.

Buy to Close November 15th - $60 at $1.00.

You should close the entire position. For example, if you traded the suggested 3 lot, you would buy back 3 calls.

This will also help to reduce the risk on the entire position.

The profit on this trade is about 50% in 4 days.

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