December 11, 2019 - MDT Alert (SNAP)

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 trade on a stock we traded in the past. And that stock is SNAP.

However, unlike the last time I suggested it, I am not going to suggest you buy the stock.

Instead, I am going to suggest a short term debit spread.

Here is the suggest:

Buy to Open December 20th - $14.00 call for $0.44

Sell to Open December 20th - $15.00 call for $0.11

The net debit will be 33 cents per spread with a maximum value of $1.00.

In other words, the return would be 2 to 1 if SNAP moves above $15 by next Friday.

Because this is a short term position, I suggest you limit the trade to a 12 lot or .04% of the portfolio.

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