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Strategies & Market Trends : Trading Options on the Nasdaq 100 Index (NDX)

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To: Jags who wrote (10)3/6/1998 8:32:00 AM
From: MJR  Read Replies (2) of 33
 
Jagadish:

I certainly don't mind questions... I only apologize that I can't get back to your questions quicker. Mind you though, I'm no expert.. just a small individual investor who's having a lot of fun!

I did pretty well on the NDX puts yesterday... only problem was that I was away from my PC all day and didn't know where I stand..I will be watching closely today, but even if there is an upswing I believe it's bargain hunting and the net change over the next week will be negative still. Looks like more earnings warnings to come. MOT warned last night!

I trade only options.. on both stocks and indexes, but I follow only a handfull of stocks and indexes.. I follow the big techs like MSFT, DELL, DEC, CPQ, MOT, etc. and the MSH, NDX, DJX indexes.

Generally I buy only in the money options near the stock price. No real reason except that is my preference. Way out of the money just seems too risky.

I use fairly short term stochastics like 5 - 10 days.. since that is my general trade style. I am beginning to use TC2000 as my chart software. Working pretty good so far.. gave me the early heads up on trends on the NDX and INTC!

Well.. that's all for now.. good luck!

Mike
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