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.
When we can book a 50% in one day, I suggest you take it.
Let's go ahead and close the NVDA position we put on yesterday.
Here is how you close the position:
Buy to Open July 19th - $157.50 call @ $3.90
Sell to Open July 19th - $162.50 call @ $1.05
The net credit will be $2.85 per spread or $855 if you traded the suggested 3 lot.
The cash gain will be $95 per spread or $285 if you traded the 3 lot.
This works out to a gain of 50% for one day.
