September 10, 2015 - MDT Alert Update (NCR)

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.

I would like to adjust the NCR position today.

NCR is up over 7% and is almost trading at $27.

I suggested a debit spread when you initiated the position in the event the entry was not perfect.

It does not mean you have to exit both options at the same time.

The last trade for the January $32 calls was at $.52.

My suggestion is to Buy to Close the January $32 calls at $.50.

You could pay up to $.75 and it still makes sense.

Remember, you can always raise your offer.

Assuming you pay $.50 for the calls, you will book a profit of $.80 per option.

This will reduce the cost of the long $27 call down to $2.20.