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 am going to suggest a short term debit spread on NVDA.
And I am going to suggest you trade the front week options.
Here is the idea:
Buy to Open - March 29th - $172.50 call for $4.20
Sell to Open - March 29th - $177.50 call for $2.20
The net debit will be $2.00 per spread, with a maximum return of $3.00 per spread.
Limit the buy in to a 4 lot or .8% of the nominal portfolio.
