Thanks for the comments everyone. Nutsneal, Profit level is open. I do not attempt to predict price levels, therefore I don't know at what level profit will be taken. My trading is based on timing. As far as loss, if JPM trades above 36.75 I will probably exit. The spread on this option has never been more than .10. It is in the money so time decay is a small factor. JPM volitility has been low, the options are relatively cheap. Hoping for volatility to increase with an expected drop in the stock market. Lack of substantial rally on good econ. data perhaps shows buying has dried up.
long SINA Nov03 35 Calls @ $3 off morning lows... Long QLGC Dec03 60c near LOD.... already short Nov03 60c from slightly higher level on qlgc.... short Nov03 55p from approx. 2+ weeks ago. Spread SINA calls against Nov40s
you might want to look a selling the dec 35 put against your position???? .70 bid make you about 1.15 in a trade that is 1.70 in the money! Even if you don't do this leg now it might be a good way to lock in if the price continues to move closer to 35 or even lower. good luck
Exited my JPM put position at 2.10. May be little chance for further decline this week, so I exited instead of chancing a move higher. My cycle work shows a swing low sometime in the 2nd half of Nov., then a rally into early Jan. Not sure of going long puts anymore this month. Will wait and see how the market moves. Possibly a tradable down move next week.
13.5% gross profit in 5 days. Nice trade. Please explain some of your cycle work. Time etc. Also please explain your development process if you would. I would be interested in any books and or authors on cycles you have found helpful. Thanks
Nutsneal, My cycle work is my own originality. There are no books, etc.. on the work I do. Due to the potential for commercial value, I will not reveal how it is completely done. I will say that the markets repeat the same cycles over certain periods of time. I compare historical charts of the appropriate time frame and the cycles are observable. Please note the cycles are not necessarily accurate, but give a general idea of where highs and lows may occur. I always use price action to govern actual trades. Thanks for the complement. The JPM trade didn't move as much as I would like. I will look for more volatile stocks to trade next time. Russ.
The rest of this week will determine if I trade any next week. If qqq does not make a new swing high over the high on Nov.7 of 36.18, I will look to trade qqq puts next week. My short term cycles show a high over the coming weekend, Nov. 15/16, and then a low around Nov. 24. But if qqq makes a new high, I may not trade next week and instead wait for a swing low around Nov. 24 and take long call positions.
Sorry for late reply iceman, didn't notice your post until now. OptionsXpress has no minimum opening balance. I have a small account.