Ugh! Well Traders, here we go again it looks like. The $NDX got a bug up its ass and took off today, ending up over $18 points. That wasn't such a big deal, but what WAS a big deal is that the index broke through previous resistance at $1,824. That could be huge, and dangerous for my trade since there is nothing really holding the index back at this point. You would have to go back to July 2001 to find these levels! My only saving grace at this point may be the MACD and STO and that next week's Options Expiration is typically a down week too, but who knows? I need to be ready to move if the $NDX hits $1,860 which is certainly not too far away. I certainly liked this when it was rangebound. Let's see how well the $125 point I initially set up holds out.
Happy Trading!
1 comment:
I've had some pretty good luck so far with the IC's, but they have been a lot of work recently! I'm debating setting up one for this month, the last two have worked, but the profit has been mild compared to straight calls. A 10-20 point move makes a VERY large amount of money!
My target for a trade is 20%/month, and in these strongly trending markets, it has been hard to get with an IC. I have had better luck waiting 'till about 3 weeks out and making a smaller spread, but that is getting risky.
I think I am going to try setting up an IC with fewer contracts, and taking the remaining money and playing calls/puts as approriate.
BTW, congrats to your Trojans! This from a long time Bruin and new (Boise State) Bronco.
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