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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: SDan who wrote (932)9/23/1999 4:10:00 AM
From: jjs_ynot  Read Replies (1) of 2317
 
SDan,

I think that you have to establish your own trading system and then select a vehicle to achieve that. Spreads have the nice advantage in that they can provide a profit as long as the market doesn't move against you strongly.

You need to develop a set of tools to allow you to determine if you think that the market trend is up, down, or a trading range. At that point you can decide the way to position your plays.

Here are some good places to start reading/learning:

Subject 24052
techstocks.com

Paper trading for a while is also a good way to "get your feet wet".

Do you favor doing both put and call spreads each month (establishing an up and down expected range for the market)

The current period is unique for me. I do not usually have both put and call spreads on simultaneously. However, the current market conditions are so unpredictable to me; I have chosen this route until I see a trend in one direction or the other.

Dave
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