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Strategies & Market Trends : Playing the QQQQ with Terry and friends. -- Ignore unavailable to you. Want to Upgrade?

To: stock2005 who wrote (1028)	6/26/2005 1:52:56 PM
From: Walkingshadow	Respond to of 4814

Hi Farooq, Interesting strategy, basically a strangle I guess. Hope your expirations are a few months down the road. Probably a later expiration on the 38's compared to the 35 short position would be ideal, since it is likely that QQQQ will move down more, then reverse and take out 38 in the coming month or two. The hope would be that the short side could be covered at a profit, then the long side could become profitable later. If that worked out, you might even consider adding to the long position with the proceeds from the short side, which would decrease your cost basis for the long side. I think we'll see the downward momentum subside considerably next week, and QQQQ may chop around some before finding a reversal point. ..... all IMHO, of course. Best of luck, T