Wednesday, September 24, 2008
NDX NQ QQQQ QID trading (Bottom Area)
New Policy: To Read The Market Analysis Reports Generated By Our Proprietary Models,
You Now Need to Subscribe. Fill Form Below. Subscription Is Free.
Get Instant Access to the Latest Report, As Soon As You Submit the Form Below.
Dear stock market traders and investors, stock blog readers, and followers:
The area of the bottom of NASDAQ-100 is around the corner. The top of volatily is also around the corner. NDX closed at 1648 today (Tuesday). QQQQ closed at 40.50 area, and VXN was at 35%.
The bottom of NDX and QQQQ are estimated at 1600 area, and QQQQ at 39.50 area. For volatilty the top is estimated at around the 38 area.
How to play This? In multiple ways and multiple stages. Now we are in stage one of the revisit of the bottom area. Since the bottom is a process, and Vol. should decline, we would like at first to sell volatility premium while we go slightly long.
At close Today (Tuesday), we sold 42 strike ITM puts on QQQQ (quarterly QQQQ options expiring in a week). They have some very juicy premium. We also sold 43 strike calls early in the day. We have sold (by legging) a straddle with a total premium of around $1.50 The area of profit is wide (from $39.00 to $44.50.
We plan to manage this position as QQQQ moves around.
This position is a small size and is not the full position. A larger size will be initiated in case we hit the 39.50 today (or on Thursday). If the market should a bottom earlier, then it is fine. We should be able to bank on the puts and also on the short volatility as vol. decreases on the way up.
We expect NDX and QQQQ to rise in the morning until around mid-morning. If it does so, we plan to take profits on the short 42 strike puts, and decide from there on selling a lower strike or waiting for the stock to retreat to re-enter the short put at strke 42 or lower.
Do not forget to enroll (Send email to the address below). If you receive information from this post via blog feeds, we would really like to hear from you, and you would be missing information that would make available to only those who are subscribers.
We pride ourselves in the accuracy of our market timing, and the information and insight we share with you. For instance, please take a moment to read past posts on this blog which are more of an educational nature.
Do miss the articles the "market timing experiment, and the series of tops and bottom nailing", on the use of options in buying stocks such as AIG, and also one of the early posts in which we focus on the why, and how of: the market timing experiment, and the results we have obtained.
To your profits,
UPDATES THAT WE HAD INCLUDED AS BREAKING NEWS:
Thursday September 25: 1:03PM with NDX at 1704.ish, we are taking off the long NDX position established on Tuesday's close when NDX was at 1650. Profits: 55 NDX points.
Friday September 26: 12:06PM with NDX at 1644, we are taking off the short NDX position. Profits: 60 NDX points.
The area of the bottom of NASDAQ-100 is around the corner. The top of volatily is also around the corner. NDX closed at 1648 today (Tuesday). QQQQ closed at 40.50 area, and VXN was at 35%.
The bottom of NDX and QQQQ are estimated at 1600 area, and QQQQ at 39.50 area. For volatilty the top is estimated at around the 38 area.
How to play This? In multiple ways and multiple stages. Now we are in stage one of the revisit of the bottom area. Since the bottom is a process, and Vol. should decline, we would like at first to sell volatility premium while we go slightly long.
At close Today (Tuesday), we sold 42 strike ITM puts on QQQQ (quarterly QQQQ options expiring in a week). They have some very juicy premium. We also sold 43 strike calls early in the day. We have sold (by legging) a straddle with a total premium of around $1.50 The area of profit is wide (from $39.00 to $44.50.
We plan to manage this position as QQQQ moves around.
This position is a small size and is not the full position. A larger size will be initiated in case we hit the 39.50 today (or on Thursday). If the market should a bottom earlier, then it is fine. We should be able to bank on the puts and also on the short volatility as vol. decreases on the way up.
We expect NDX and QQQQ to rise in the morning until around mid-morning. If it does so, we plan to take profits on the short 42 strike puts, and decide from there on selling a lower strike or waiting for the stock to retreat to re-enter the short put at strke 42 or lower.
Do not forget to enroll (Send email to the address below). If you receive information from this post via blog feeds, we would really like to hear from you, and you would be missing information that would make available to only those who are subscribers.
We pride ourselves in the accuracy of our market timing, and the information and insight we share with you. For instance, please take a moment to read past posts on this blog which are more of an educational nature.
Do miss the articles the "market timing experiment, and the series of tops and bottom nailing", on the use of options in buying stocks such as AIG, and also one of the early posts in which we focus on the why, and how of: the market timing experiment, and the results we have obtained.
To your profits,
UPDATES THAT WE HAD INCLUDED AS BREAKING NEWS:
Thursday September 25: 1:03PM with NDX at 1704.ish, we are taking off the long NDX position established on Tuesday's close when NDX was at 1650. Profits: 55 NDX points.
Friday September 26: 12:06PM with NDX at 1644, we are taking off the short NDX position. Profits: 60 NDX points.
To Receive Market Forecasting/Timing Reports, and Other Special Trading Reports: Enter your email address in the form below, and click submit. Your subscription is at no cost to you and you can unsubscribe at any time. You will receive our special market timing reports, trading reports, and other specials available for members only. We reserve the right to withdraw or terminate this FREE subscription offer at any time. Therefore, secure your subscription now as we do not guarantee that this offer will be available at your next visit to this site.
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home