StockFetcher Forums · General Discussion · Anyone trading options on qqq?<< >>Post Follow-up
woofys
212 posts
msg #32859
Ignore woofys
8/16/2004 4:58:04 PM

This is my first try at the q's, is there anything I should be aware of? Do you Think I'd be better off in calls or puts? If I wanted to buy a few calls, how far out should I buy them to be sure I didnt run out of time value before the trend ended? I was thinking of buying Oct. calls.Do you think the down trend has ended?


Aries321
6 posts
msg #32867
Ignore Aries321
8/16/2004 9:47:42 PM

Could you please just post to General Discussion or Filter Exchange? Don't see why everyone has to read your posts twice


TheRumpledOne
6,358 posts
msg #32870
Ignore TheRumpledOne
8/17/2004 11:11:05 AM

A few rules of thumb for trading the QQQ options:

Don't buy options in the month they expire. I would buy September options starting this week. And when Sept 1 comes, I would just ride what I have.

Buy options that are in the money. Safer, more action, especially if you daytrade.

Buy calls if QQQ trending up and puts if QQQ trending down. I use the ema(13) for trend direction with a cross above/below the ema(26) as the reversal signal.

Of course, I use rsi(2) as the indication of tops and bottoms. The best indication of a top is NEGATIVE DIVERGENCE and the best indication of a bottom is POSITIVE DIVERGENCE.

So today the buy would be the Sep 33 calls. Of course you can ladder you buys.. 33, 34, 35 calls and 33, 32, 31 puts. But be careful.

These are rules of thumb.. always remember: ANYTHING CAN HAPPEN!

MAY ALL YOUR FILLS BE COMPLETE.


woofys
212 posts
msg #32893
Ignore woofys
8/19/2004 8:40:09 PM

rumpleone...thank you.


eagleoptions
6 posts
msg #32915
Ignore eagleoptions
8/22/2004 12:25:40 AM

With the terrorism treats, Iraq war, elections, high gas prices, etc., the outlook, in my opinion, for the market is bearish. If you agree, buy puts or sell calls. Or you could be more conservative and trade straddles or strangles.




TheRumpledOne
6,358 posts
msg #32920
Ignore TheRumpledOne
8/22/2004 12:55:24 PM

For the record, buying the Aug 33 calls since my post would have doubled your money or more! Buying the Sep 33 calls would have given you a nice profit too.




robdavis
69 posts
msg #32931
Ignore robdavis
8/23/2004 5:34:55 AM

TheRumpledOne,

> The best indication of a top is NEGATIVE DIVERGENCE and the best indication of a bottom is POSITIVE DIVERGENCE.

Question: Are you speaking about (positive or negative) divergence between price action and RSI(2)?

(then you wrote...)

> So today the buy would be the Sep 33 calls. Of course you can ladder you buys.. 33, 34, 35 calls and 33, 32, 31 puts. But be careful.

(then eagleoptions wrote...)

> With the terrorism treats, Iraq war, elections, high gas prices, etc., the outlook, in my opinion, for the market is bearish.

(then you wrote...)

> For the record, buying the Aug 33 calls since my post would have doubled your money or more! Buying the Sep 33 calls would have given you a nice profit too.

I find it remarkable that, in the last week -- when many of us believed the dominant market trend (both in the short and long run) was bearish -- we could've and should've acted against our best judgement and bought (August and September) CALLS, not puts, if we wanted to make a nice profit. Here's an idea: Why not conduct a survey periodically, among investors, like ourselves, just to to find out what the dominant market sentiment is, and then one could place one's "bets" against that all powerful (but usually erroneous) belief, and win BIG!

Rob


TheRumpledOne
6,358 posts
msg #32934
Ignore TheRumpledOne
8/23/2004 11:25:09 AM

Yes, the divergence was price vs. rsi(2). It doesn't fail. You must not be greedy. Take what you can when you can from the market before the market takes it from you.

Don't need others' opinions.. just do what rsi(2) tells you to do.

MAY ALL YOUR FILLS BE COMPLETE.


StockFetcher Forums · General Discussion · Anyone trading options on qqq?<< >>Post Follow-up

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