The "haves" and the have "N.O.T.S." (Novice Options Traders)

Our Gap Fade Strategy has signaled a trade for the following:



Buy to open (SPYDX) SPY Apr06 128 Calls at $1.30





Andrew Crowder

Chief Options Strategist

Crowder Investment Research, LLC
 
April 13, 2006 Trade Alert – Gap Fade Strategy



Our Gap Fade Strategy has signaled a trade for the following:



Sell to close (SPYDX) SPY Apr06 128 Calls at $1.45





Andrew Crowder

Chief Options Strategist

Crowder Investment Research, LLC
 
April 13, 2006 – Gap Fade Trade Summary



A trade was signaled in our Gap Fade strategy today. SPY opened at $129.59, down a fractional $.02 from Wednesday’s low of $129.61. As a result we purchased the SPY Apr06 128 calls (SPYDX) for $1.30 just after the open.



We decided to sell our calls early for $1.45, allowing us to lock in profits of 11.5% (not including commissions) on the trade.



In our sample portfolio we purchased 10 SPY Apr06 128 calls (SPYDX) for $1.30 just after the open for $1,315 (including commissions). As we mentioned above we sold the 10 SPY Apr06 128 calls (SPYDX) for $1.45, or $1,435 (including commissions), allowing us to lock in profits of $120, or 9.2%.



The sample portfolio is currently worth $6,480, up 29.6% since the beginning of 2006.



I hope everyone has a wonderful extended weekend!



Andrew Crowder
 
Yesterday this alert came but it never filled from Optionsmart


Day Limit Order
Open Credit Put Spread
Buy to Open QQQQL QQQQ May 38 Put (AT)
Sell to Open QQQQO QQQQ May 41 Put
Credit 0.50
 
This came later on yesterday after the first alert



NEW ENTRY PRICES

Day Limit Order
Open Credit Put Spread

Buy to Open QQQQL QQQQ May 38 Put (AT)

Sell to Open QQQQO QQQQ May 41 Put

Credit 0.45
 
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