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 a suggestion on QCOM. I believe it is down to a key support level and it should get a bounce.
I am going to suggest the same trade structure as the trade set up on NVDA.
That is a short term debit spread.
I suggest you go out to next week.
Here is the idea:
Buy to Open July 19th - $75.00 call @ $0.95
Sell to Open July 19th - $78.00 call @ $0.24
The net debit will be $0.71 per spread.
Based on the nominal portfolio, limit the trade to a 10 lot or 0.7% of the portfolio.
The maximum return will be a gain of 322%.