Replies to post #51418 on SwingTrade Member Forum (SWING)

[BuzzOnDaBeach]

nazzy, I think I agree with you, however,

Fear of terrorism back in play. Cash is king going into a weekend. If the naz bounces tomorrow, I expect a sell off into the close.

The naz is in oversold territory, however, just as it can stay overbought for quite a while, it can stay oversold as well.

As I said earlier, I will definitely buy the close or the 200 day sma if it gets there (34.10 QQQ's looking for 35 calls). And I agree, a bounce into ops exp, althougth the bulls have ruled the max pain the last few months, so I think it's the bears turn, and the naz won't come close to that 36.50. 35.80 tops IMO, but I look for a big bounce Monday if no terrorism over the weekend.

Buzz

[BuzzOnDaBeach]

And on the side of safety, my last options play was a straight forward straddle, in which the puts have already put me ahead of the loss on the calls, which I was able to sell today on the bounce for minimal loss, while the puts are up a decent percentage. I will close them tomorrow one way or another.

I had 100 calls at .35 (36's), sold today at .25 for a 1,000.00 loss.

I have 100 puts at .35 (35's), now at .55 bid, for a current gain of 2,000.00.

Net gain on the play, 1,000, or plus 14% for the capital risked. Hoping an am dip gives me .70 on the puts, for a net 2,500.00 gain (35%). I think I entered the straddle on Monday, but would have to go check my posts as I put it up as a perfect straddle play at the time.

Buzz