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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (9455)	2/5/2006 4:36:45 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 12411

Right now, I'm short two March contracts, sold one March 1265 Put and one 1265 Call, and sold one March 1270 Put and one 1270 Call... tomorrow I will buy two 1275 Calls... that's two complete wrap arounds... I may actually put on another three across the board for a total of five... GZ

To: Patrick Slevin who wrote (9455)	2/6/2006 3:08:27 AM
From: c_hl	Read Replies (3) \| Respond to of 12411

Now I kind of understand what GZ's intension. As everybody has seen, Spiral is a great tool to make big $ in a 40+ points wave, but has difficulty to deal with 20-30 points move especially small ones. Now he uses the shorted options to cover that situation. As long as the market goes nowhere, the options will make $ to offset the loss from the spiral. But you have to use the futures to follow the spiral in case a break out of the range which means big wave. Great idea. So you know find a way to make up the loss.