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 do want to make one more suggestion today. And this will not be a covered call.
The trade structure I will suggest today is a debit spread.
And the stock is TSLA. This alert is based on TSLA being oversold in the short and I do expect a bounce.
And because of that, I don't want to buy a lot of time.
TSLA is trading around $279.88 as I write this.
My suggestion is to Buy to Open March 15th $280 call for $5.70.
And Sell to Open March 15th $287.50 call for $2.70.
The net debit will be $3.00 with a maximum gain of $4.00.
My suggestion is to limit the trade to a 3 lot or 1.2% of the portfolio.
