Update 2 - Re: Our Trades on the NASDAQ 100 Mini Index

By: Patrice Johnson | Sun, Jun 29, 2008
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6/29/2008 2:40:51 AM

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 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 maintain your positions 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 2100 is $1246.40.

This amounts to $311.60/month in additional income (for the period of June 2008 to September 2008): $1246.40/4.

Our breakeven points before this trade loses money are as follows:

Our breakeven point for selling the September 2008 2100 Call Option at $43.50 is $2142.00 That is this position will begin to lose money if the Nasdaq 100 Mini Index rises above $2142.00.

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 ($1637.68 if we maintain the call option)

STATUS REPORT OF OUR POSITIONS IS BELOW:

WEEK 2 (6/27/2008): +$120.00 ($91.40 after commissions of $28.60)

September 2008 NASDAQ MINI INDEX 2100 Call Option: +$555.00

September 2008 NASDAQ MINI INDEX 1700 Put Option: -$435.00

Difference: +$120.00 ($91.40 after commissions of $28.60)

NOTE:

If we only sold the the call option, our position would show a gain of $555.00 for week 2. If we only sold the put option, our position would show a loss of $435.00. However, because we sold both the call option and the put option, our account for the second week ending June 27, 2008 shows a gain of $120.00 ($91.40 after $28.60 in commissions).

Next week, I expect the Nasdaq 100 Mini Index to close up for the week ending Sunday, July 6, 2008, but on light volume.

My fellow J.E.D.I.,

Please see weeky and daily chart below the the NASDAQ 100 MINI INDEX dated June 27, 2008.

WEEKLY CHART

DAILY CHART

So, maintain both positions for now. And watch the following price levels on the NASDAQ 100 MINI INDEX:

$2142.00 for the September 2008 2100 Call option we sold on June 16, 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 Johnson

Author: Patrice Johnson

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

Patrice V. Johnson

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