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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: Nicole Bourgault who wrote (45751)	8/11/2001 1:21:28 AM
From: ajtj99	Respond to of 56535

Actually, Nicole, after looking over a couple of things tonight I'm not sure September calls are good for more than a couple of days trading for Max Pain. The VXN ended at 48.15 yesterday, which is close to a level that has been associated with topping action in the recent months. The VXN did go into the low 40's a year ago near the top at 4200 as Max posted a few months ago, but I believe that normally at a local bottom we see numbers much higher than this. In April the VXN was in the mid 70's when the Nasdaq touched 1619. I think your gut feeling was correct, and you may be able to get some September puts if the Nasdaq bounces to the 2020 to 2050 range for Max Pain. Anyway, I'm going to continue to look at things this weekend to get a better idea of how to play the next week to 10-days. I'm thinking of going Aug calls, Aug puts, and September calls, then September puts (the last two for the Fed). I might use some combinations of both for protection above and below in case I'm on the wrong side of things.