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Strategies & Market Trends : Trading Options on the Nasdaq 100 Index (NDX) -- Ignore unavailable to you. Want to Upgrade?

To: Joyce Chen who wrote (1)	2/25/1998 4:14:00 PM
From: MJR	Read Replies (1) \| Respond to of 33

>>>Would you like to share us your experience? I never traded index >>>before, your input will definitely be very helpful. I'd be happy to... I trade the NDX based on two major indicators, the current trend of the NDX as well as the 60 and 120 day stochastic based on end-of-day prices. I do not trade by the hour, but at times will be in and out over the course of a few days. Before I enter a position, I have to see a strong indicator that the trend is in fact a trend and not just static on the charts. That's where the stochastics come in to play. Once I see a strong trend, I'll buy either puts or calls (depending on the direction) for no more than 2 months out.. I usually don't deal with 5-12 month option expirations.. although that may, in fact, be profitable. I'll keep the position until the trend reverses. It's a very simple strategy, but if you discipline yourself enough to keep away from the "static" it can be profitable. Also, I never shoot for the home runs.. I tend to build value little bits at a time as investing, no matter how you do it, is a slow and disciplined process. Good Luck Mike