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.
And that is what I am going to suggest today.
Buy to Close the October 21st - $24 call for $.30.
You will book a profit of 22 cents per option.
Based on the tracking portfolion, this is a gain of $440.
Another way to look at this, is that it reduces the cost of the long $22 calls down to $1.17.