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NASDAQ 100 (QQQQ) Both chicken straddles call position are net profitable for the cost of the straddle. Close out the call positions if price reaches $44 by Friday the 13th. The market will have been up over the green signal line for the 9th day on Friday the 13th. Expect prices to fall back toward the green signal line for harmonic grounding. Total net profit between $1125 -$2225.
Jan 2, 2006 NASDAQ 100 tracking stock (QQQQ): Buy long 25 Jan $42 call and Buy long 25 Jan $35.63 puts for a total cost of $2124. The profit potential is big using 25 contracts. On the upside, any move above $43 or below $35 will score huge returns. Once again, you can see the price reach its peak at or near $42 for the calls, then prices move down to the red signal lines. Closing prices below the yellow signal lines could accelerate the downside potential over the 3 weeks if market fails to rally higher. Close out the position on the profitable side when prices move lower than $35 or above $43 by Jan 10th.
Interesting note, this week was the anniversary of the NASDAQ 5000, after 6 years of trading, is not retraced it's losses. There was talk of the NASDAQ merging with he NYSE, as I predicted years ago in a club post. The NASDAQ market an NYSE will merge, but it may be the end of the the NASDAQ big mo mo stocks of the 90's. Just as AOL and Time Merger occurred at the height of the NASDAQ, we know how that merger end, just as all merger have ended , with valuation dropping 50% or more over the next 5 years from completion of the mergers.
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