Saturday, December 15, 2007

Update on Open Trades Expiring In December (21st)

With just 6 days remaining to expiration the open NDX and RUT trades are very safe with distances of 347,122,253,228 and 113 points from the closing 12/14/07 values. Even with the market dropping our Bull Put trades are still very safe for the remaining days. Having distances of 100 points or more is a very comfortable position to be in during the last week of expiration.

This market continues to move up and down on good and bad news but this does not effect any of our trades because that are based on a neutral trading strategy. We do not care what direction the market moves in and we can handle swings of 100 points or more. I really like this stress free trading strategy. We only had to adjust trades a few times in 2007 and I expect only a few adjustments in 2008. Adjusting trades is not a big deal as long as you can break even and protect your cash flow.

I hope many subscribers had a chance to roll up the original NDX Bull Put trade last week. Those who did collected a very nice net credit and increased the return on the NDX Iron Condor to one of the highest all year. I plan on executing many more rolling trades in 2008 so that we can achieve 6% to 9% returns on some Iron Condor trades.

New trades expiring in January will be posted to the members page next weekend following expiration Friday.

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