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.
Let's go ahead and book the profit on the NVDA spread.
Here is what you need to do:
Sell to Close - March 29th - $172.50 Call for $5.85
Buy to Close - March 29th - $177.50 Call for $2.75
The net credit will be $3.10 per spread,
This means the profit will be $1.10 per spread or $440 if you did the suggested 4 lot.
The result is a gain of 55% in two days. I would rather book the profit and not run the risk of it moving against us.