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Strategies & Market Trends : JoAT's QQQ System -- Ignore unavailable to you. Want to Upgrade?

To: KB who wrote (364)	7/6/2004 10:43:35 PM
From: Gersh Avery	Read Replies (1) \| Respond to of 942

I bracket the market with .05 contracts long. OTM calls AND puts. if the market heads lower then I buy the next lower strike call as it hits .05. If the market moves up then I buy the next higher strike put when it hits .05. eventualy I can sell a stradle in the center, where I've had the covering contracts purchased for only .05 .. In the end, I've established credit spreads and locked in profits. This is in combination with sold stradles that are covered while building up the covering contracts. ie while this run was going, I sold 2 36 puts for .85 and then covered at .20. sold 2 37 calls at .75 and covered at .15 within the wiggle movement of the market. gains on these trades are .65 times 2 on the puts and .60 times 2 on the calls. $250 minus commisson. This pays for the majority of the OTM through away calls and puts purchased at .05 Two of the 36 calls I'm currently short I sold at 1.35. The other 6 I sold at .55. The 8 37 puts got 1.05 So then .. on two sets I take in 1.35 + 1.05 per set. The remaining six sets I take in 1.05 + .55 per set. At expiration I drop $1.00 per set and keep 1.40 for two of the sets and 0.60 per set for the last 6 sets. .60 6 = $360 1.4 2 = $280 total $640 gain starting with $1100.00 for margin. yes .. I didn't take out comissions in these figures. and this month, I was sloppy. I expect to tighten up next month. I believe that I should be able to take an average in excess of 25% per month, safe and clean.