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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (14181)	1/31/1999 9:59:00 PM
From: Tom Trader	Respond to of 44573

Check out the strategy that I mentioned on the OEX in greater detail I am going to use it more and more -- I think it could be a real winner. Basically selling naked calls when I get a sell signal, then selling naked puts when I get a sell signal. I don't close out the naked calls but buy way OTM calls when the buy signal occurs to make sure that I don't get hurt on the naked calls and then when I get another sell signal, I'll sell more naked calls ATM and buy OTM puts -- continuing this cycle until the options all expire for the month. Best strategy when the vix is high and premiums are rich -- and the erosion of premiums takes care of everything resulting in a decent profit. If the market moves strongly in one direction or the other I am protected. Low maintenance approach -- requires a lot of margin and timely entries and some luck with regard to the buy and sell signals.