Wednesday, December 1, 2010

Simple Rule of Thumb

We saw the Dec 535 Call have both very negative and positive, and then day trades. Many subscribers wrote to tell me of two or three profits on this call, as the market tanked last week, and we saw the possibility of trading again. We profited again on 11/30, with lows of 5.70 to highs of 7.70. Tight $1.00 profits and up.

We are falling love with this option. Play it again trying to buy below prior day close, but following futures. We see likely upturn to 10,256 area

Remember this is how we are trading:


The OEX Simple Rule of Thumb

Buy at S-2, Sell at R-2
Buy at R-2, Sell at S-2

Buy an option at Low
Volatility
And Sell it a High
Volatility

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