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 an internet security stock. And it is not FEYE.
That stock is Palo Alto Networks, Inc. (PANW).
PANW reported about 10 days ago and gapped up strongly off their earnings.
Today it is getting a push.
My suggestion is to Buy to Open the October 6th – $145 calls. They are quoted at $2.29 to $2.71, with the last trade at $2.44.
My suggestion is to buy them with a limit of $2.50. And based on our nominal portfolio, limit the trade to a 4 lot, which is a 1% risk.
Limit the risk because we are trading options that expire in two weeks.