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For the most part it was a fantastic day of trading. The S&P emini got caught in a whipsaw but the Russell emini was superb. The OEX Put trade was just phenomenal. I saw an opportunity for a greater profit today and this was the reason we targeted 3 points vs. our "usual" 2 points. That increased our initial profits and then with a combination from options expiration this Friday and a larger target range and we had an environment that saw our Put option premiums inflate quickly.
When your assumptions are correct and you're close to expiration, trading options offers the best leverage out there. This was a great way to start the week!
Have a good evening and see you tomorrow morning.
 
posted by OEX : 3:18 PM
 

  
OEX 
OEX through the final target range level of 677.75. So, anyone still trailing a position should now be on the sidelines.
Just another miserable session for the bulls. And to think all of these could have been avoided by a 50 basis point rate cut instead of 25 basis. Who would have thought such a minor cut would make such a huge difference.
Now that the OEX is at the calculated intraday low we'd normally expect prices to stabilize. Also, the 60-minute OEX chart is getting extremely oversold as measured by the RSI indicator. But we could go out much lower before the close. I have a suspicion we'll see a bounce tomorrow. Talk about going out on a limb :-)
Stay tuned.
posted by OEX : 2:10 PM
 

  
Update 
We're now into the final 2 hours of trading. I expect volatility to remain high. It wouldn't be a surprise to see the bulls try to come in and stage a rally. I seriously doubt they will be successful. Again, least path of resistance is to the downside. But we have awesome profits in front of us (assuming you're holding Put options) and letting those profits slip away is never a wise decision. Don't find yourself being greedy holding out for a few more ticks because you will probably find the risk won't be worth the reward. Remember, selling into weakness while holding Put options is logical and I said earlier that being logical is a key ingredient of success.
Stay tuned.
posted by OEX : 1:11 PM
 

  
OEX Profits Reached 
OEX Profits Reached !!
That was an agonizing 25-minutes :-) But the patience paid off. Very nice profits considering our target was a little larger than normal and we're trading the front month December options that are moving extremely fast.
For those of you trailing a few contracts, we've lowered the trail stop to 682.

Stay tuned.