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July 14, 2008

Update 4 - Our Trades on the Nasdaq 100 Mini Index - TAKE SOME PROFITS!
by Patrice Johnson

7/13/2008 1:38:53 PM

Greetings, J.E.D.I.,

Welcome to The J.E.D.I. Trader.

To learn more about my Stocks, Options & Options on Futures Trading Service, click here.

LONG TERM TREND SIGNAL: DOWN

INTERMEDIATE TERM TREND SIGNAL: DOWN

STOCK, OPTION, OR FUTURE UNDER ANALYSIS:

NASDAQ 100 MINI INDEX SEPTEMBER 2008 2100 CALL AND SEPTEMBER 2008 1700 PUT

TICKER SYMBOL FOR SEPTEMBER 2008 NASDAQ 100 MINI 2100 CALL OPTION: NQU82100C

TICKER SYMBOL FOR SEPTEMBER 2008 NASDAQ 100 MINI 2000 CALL OPTION: NQU82000C

TICKER SYMBOL FOR SEPTEMBER 2008 NASDAQ 100 MINI 1700 PUT OPTION: NQU81700P

EXPIRATION DATE OF OPTIONS CONTRACT: SEPTEMBER 19, 2008

EXPIRATION DATE OF FUTURES CONTRACT: SEPTEMBER 18, 2008

TICK SIZE: 1 point = $20.00

INITIAL MARGIN: $2750

MAINTENANCE MARGIN: $2200

FIRST NOTICE DAY: Not Applicable (N/A) - Nasdaq 100 Mini Index is cash settled.

This e-mail is to alert you to take profits of $720.00 ($691.40 after $28.60 in commissions) by buying to close one September 2008 2100 Call Option (Ticker Symbol: NQU82100C) at a limit price of $7.50 or as close to $7.50 as possible) that we sold short on Monday, June 16, 2008 at $43.50 AND THEN place another order to sell to open one September 2008 "2000" Call Option (Ticker Symbol: NQU82000C) at a limit price of $23.25 (or as close to $23.25 as possible) AND maintain our open put position on the Nasdaq 100 Mini Index Options.

Total Proceeds received at expiration if the September 2008 Nasdaq 100 Mini Index trades above 1700 and below 2000 and we are able to buy to close ticker symbol NQU82100C at $7.50 on Monday, July 14, 2008 is $2281.40 (or $1532.80 after $57.20 in commissions) - That includes: $841.40 after commissions of $28.60 if NQU8 trades above 1700 and below 2000) plus $691.40 (if we are able to close short position (ticker symbol YMU8 2100C) at $7.50 that we sold short at $43.50 on June 16, 2008).

This amounts to $383.20/month in additional income (for the trading period of June 2008 to September 2008): $1532.8/4, after commissions)

Our breakeven points before this trade losses money is as follows:

Our breakeven point for selling short the September 2008 2000 Call Option at $23.25 is $2021.82. That is this position will begin to lose money if the Nasdaq 100 Mini Index rises above $2021.82. (Assuming of course, we receive $23.25 on Monday, July 14, 2008 for selling short the September 2008 2000 Call (Ticker Symbol: NQU82000C). Nevertheless, try to get $23.25 or as close to $23.25 as possible.

Our breakeven point for selling the September 2008 1700 Put option at $20.250 is $ 1681.18 That is this position will begin to lose money if the Nasdaq 100 Mini Index falls below $1681.18 ($1657.93 if we maintain the new call option referenced above)

STATUS REPORT OF OUR POSITIONS IS BELOW:

WEEK 4 (7/13/2008): +$145.00 (+$after commissions of $28.60 if we offset both positions today.)

September 2008 NASDAQ MINI INDEX 2100 Call Option: +$720.00 ($43.5 minus $7.50)

September 2008 NASDAQ MINI INDEX 1700 Put Option: -$575.00 ($20.25 minus $49.00)

Difference: +$145.00 (+$116.40 after commissions of $28.60)

NOTE: If we only sold the the call option, our position would show a gain of $720.00 for week 4. If we only sold the put option, our position would show a loss of $575.00. However, because we sold both the call option and the put option, our account for the fourth week ending July 13, 2008, shows a gain of $145.00 ($116.40 after $28.60 in commissions).

Next week, we can expect to see the Nasdaq 100 Mini Index rise because of a slight price/RSI divergence on the daily chart. (not shown). However, this index is not yet oversold and we could therefore witness some more down and up reactions before expiration.

However, as long as prices on the Nasdaq 100 Mini Index (Ticker Symbol: YMU8) trades above 1700 and below 2000, our total proceeds received by the September 2008 expiration will be $2281.40 (or $1532.80 after $57.20 in commissions).

My fellow J.E.D.I.,

Please see weeky chart below the the NASDAQ 100 MINI INDEX dated July 11, 2008.

WEEKLY CHART

So buy to close one September 2100 Call Option (Ticker Symbol: nqu82100c) at $7.50 limit or as close to $7.50 as possible and sell to open one September 2008 2000 Call Option (Ticker Symbol: nqu82000c) at $23.25 limit (or as close to $23.25 as possible and watch the following breakeven price levels on the NASDAQ 100 MINI INDEX:

$2021.82 for the September 2008 "2000" Call option we will sell short on July 14, 2008 and $1637.68 for the September 2008 1700 Put option we sold on June 17, 2008.

Good Luck!

And may the force of volatility will be with you.

Best Regards,

Patrice V. Johnson
The J.E.D.I Way

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The information contained in this report and future reports and newsletters contain independent analyses, statements, opinions, beliefs, and strategies that are mine and not those of the company and is made available to anyone interested in my analyses, statements, opinions, beliefs, and strategies made on stocks, options, futures, or options on futures. Information, analyses, statements, options, beliefs, and strategies in this e-mail are for informational purposes only. I do not represent that the information, analyses, statements, opinions, beliefs, and strategies contained in this report or future reports and newsletters are accurate or complete. Internet subscribers and online readers should not rely upon this information for any purpose without seeking the expertise of a professional investment advisor, professional tax consultant and/or broker. The information contained in this report and future reports and newsletters is provided only as general information that may or may not reflect the most current developments; accordingly, information, analyses, statements, opinions, beliefs, and strategies contained in this report and future reports and newsletters is not promised or guaranteed to be correct or complete. The analyses, statements, information, opinions, beliefs, and strategies contained in this report is not a recommendation to buy, sell, or hold any stock, option, future, or option on future. Nor are the statements, analysis, information, opinions, beliefs, and strategies contained in this report or in future reports and newsletters an offer for any stock, option, future, or option on future or solicit the offer of any stock, option, future, or option on future of any company. I will trade securities of the companies on which I report during the term of engagement. Patrice V. Johnson, expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this report, and future reports, and newsletters. I assume no responsibility for your trading and investment results. You assume all responsibility for your trading and investment results. You may send me e-mail to Patrice@Stockbarometer.com . However, you should not send confidential or sensitive information via e-mail as the security of the Internet e-mail is uncertain. By sending sensitive or confidential e-mail messages that are not encrypted, you accept the risk of such uncertainty and possible lack of confidentiality over the Internet. I do not necessarily endorse, and is not responsible for, any third-party content that may be accessed through this report, and future reports, and newsletters.

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