With the market having a follow through day on July 29th , 2008 it seems like we are headed higher from here for sometime, unless we get one or more distribution days and that undercuts the rally. With about 15 days into expiration left, and NDX being stuck in narrow sideways channel, here is the […]
The market is up 200 today with NDX and RUT up 40 and 17 points at one time. This could be a follow through day as per Investors Business Daily- perhaps. I took the opportunity and closed both trades as the theta ( time decay ) is minimal and its tying up margins in our […]
QQQQ SELL AUGUST 46 CALL BUY AUGUST 46 CALLS Net debit= 0.74 This is qqqq guerrilla trade for rapid gains next 20 days till expiration. Break even are 44.30 and 48.40 another leg can be added to this if QQQQ’s start trading down next week.
IWM Calendar spread. SELL AUGUST 70 PUTSÂ BUY SEPTEMBER 70 PUTSÂ Â Â Â Â Â Net debit = 1.08Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â SELL AUGUST 71 PUTSÂ Â Â BUY SEPTEMBER 71 PUTSÂ Â Â Net debit= 1.08Â Â Break evens on expiration 67.22 and 74.44Â Due to the rising market this trade may need one or two adjustments during its 24 day periods. This is called a […]
These trades are good for 1-5 days following July expirations. RUT SELL RUTÂ Â AUGUST 610 PUTS BUY RUTÂ AUGUST 600Â PUTSÂ Â Â Â Â Â Net credit 0.45 Margin required = 1000-0.45= 955Â Probability 98% This is the first leg is a BULLPUT SPREAD of the final IRON CONDOR, that may be completed at any future date NDX SELL […]
An option strategy used by professional traders and is a purely income generation tool. Iron condor is named such because it carries protection and a guaranteed outcome with high probability of success. The risk/ reward ratio in a IRON CONDOR is not whatÂ anÂ investor is looking for butÂ the high probability of success of the outcome. Nothing […]
Trading for a living is an extremely lucrative lifestyle that suits many people. Every trader dreams of living a life where he controls everything around him except the markets which workÂ independently of his her control. The privileges for being a full time trader are numerous. The working hours are great 5-6 hrs a day and […]