Stock Attack II - A Complete Analysis Message Board

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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: yard_man who wrote (21362)	10/11/2001 10:27:34 AM
From: donald sew	Read Replies (2) of 52237

Tippet, >>>> interested in understanding the strategy and how you implement it <<<< Sold the QQQ OCT 32's for 2.35 against my JAN 04 25 leaps which I originally got at 9.50 on SEPT 21. Those 32's are already up higher, so as normal I sell too early, but I did get in quite timely. Im suspecting that by next FRI(option expiration) the QQQ's could pullback to the 32 region or lower. If by next FRI it closes below 32 I will keep the full amount of 2.35, if I hold it that long. Lets say that by next TUE/WED the QQQ's hit 32, my guess it that I could buy back those calls for about 1.00 or less, thereby I would pock about 1.35. Since I originally bought the leaps for 9.50, I have a fair chance to pocket 10%+, and possibly slightly above 20% if everything goes perfect. If things go wrong and the market just rallys straight up. I limit my upside on the LEAPs, since I will buy back in-the-money/profitable to the buyer calls. The other downside risk that would put me in a losing position on my leaps would be if the QQQs tanked to below 25, since I bought the original leaps when the QQQ's were around 27 and change on SEPT 21. Hope that helps explain the strategy.

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