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.
I would like to make a suggestion on a short term debit spread.
The stock will be NVIDIA Corp. (NVDA).
I believe NVDA is at a level of support where a trade is warranted.
I don't want to use the front week, but rather go out to next week.
Here is the suggestion:
Buy to Open July 19th - $157.50 call @ $3.40
Sell to Open July 19th - $162.50 call @ $1.50
The net debit will be $1.90 per spread with a potential return of 163%.
Based on the tracking portfolio, I suggest a 3 lot or 0.57% of the total portfolio.
