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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Clappy who wrote (56363)	12/8/2002 10:06:11 AM
From: stockman_scott	Respond to of 65232

Choosing the “Right” Stock By Andrew Neyens Optionetics.com 12/6/2002 3:00:00 PM I have been working on a project these past few weeks to find an automatic format for trading Bull Call Spreads. Although I have not yet found the magic bullet, nor do I really expect to, I think the results to date of my search are certainly instructive. As trading is basically a statistical exercise (i.e., you will have some winning trades and some losing trades regardless of your strategy—you just want more “wins” than “losses”), I was looking into the possibility that one could trade a “basket” of spreads such that the averages would work in our favor. I used both the S&P 100 and the Dow Jones Industrial Average in my search. The averages worked out that the S&P had up- moves on 54% of its stocks each month and the Dow had 56% of its stocks actually increase in value each month over the past 10 years. For rest of article, including tables, click on link... optionetics.com