UPDATE: U.S. Dollar Index
8/10/2008 8:35:24 PM
Welcome to The J.E.D.I. Trader.
To learn more about my Stocks, Options & Options on Futures Trading Service, click here.
INTERMEDIATE TREND OF THE U.S. DOLLAR MARKET: UP
STOCK/OPTION/FUTURE UNDER ANALYSIS: SEPTEMBER 2008 75.00 U.S. DOLLAR INDEX CALL OPTION AND SEPTEMBER 2008 71.00 U.S. DOLLAR INDEX PUT OPTION
TICKER SYMBOL: DXU875.00C AND DXU871.00P (Note: For some firms the ticker symbol may be different)
LAST CLOSING PRICE OF JUNE 2008 U.S. DOLLAR INDEX FUTURES: $76.01
EXPIRATION DATE OF FUTURES CONTRACT: SEPTEMBER 15, 2008
PRICE VALUE OF ONE FUTURES POINT: $1000.00
LAST CLOSING PRICE OF SEPTEMBER 2008 75.00 U.S. DOLLAR INDEX PUT OPTION: $.350 ($350.00)
LAST CLOSING PRICE OF SEPTEMBER 2008 74.00 U.S. DOLLAR INDEX PUT OPTION: $.150
EXPIRATION DATE OF OPTIONS CONTRACTS: SEPTEMBER 5, 2008
PRICE VALUE OF ONE OPTIONS POINT: $1000.00
This e-mail is to alert you to get ready to to sell one DXU875.00p (September 2008 75.00 U.S. Dollar Index Put Option) or to get ready to sell one DXU874.00P (September 2008 74.00 U.S. Dollar Index Put Option).
ESTIMATED ORDER TOTAL
FROM LAST WEEK'S COMMENTARY - 8/4/2008:
"The end of the bear trend in the U.S. DOLLAR INDEX will be in effect as signaled by the breaking of the resistance line. (see chart). We cannot classify the September 2008 U.S. DOLLAR INDEX to be extremely bullish until prices violate $74.50 on increasing volume. However, if prices close below $72.00 and stay below $72.00 for three consecutive days, the downtrend in the U.S. Dollar Index will most likely continue.
We want to wait for the breakout either up or down before placing a trade on the September U.S. Dollar Index Call Option and/or Put Option.
So, until next time, watch $74.50 to go long one call option (referenced above) and sell one put option."
BELOW IS WEEKLY CHART FOR 8/1/2008:
My fellow J.E.D.I.,
Please see the daily AND weekly chart for SEPTEMBER 2008 U.S. DOLLAR INDEX below DATED FRIDAY, AUGUST 9, 2008.
So, if the September 2008 U.S. Dollar Index does not pullback tomorrow, then sell the 74 Put Option (or sell the 75 put option if it offers a higher premium than the 74 put opion) but only, if prices close above 78 anytime between tomorrow and friday and on higher than normal volume.
And may the force of volatility will be with you.