Sunday, February 20, 2005

QQQQ Buy

It looks like QQQQ does not fare well in the long term. The VXN.X (NASDAQ volatility index) is low. Big chart is also low. I will buy March 38 (sell), 38.625 (buy) Bear Call spread with a credit of $0.25. The profit will be 0.15/(0.625-0.15)= 31%. Break even point is $38.15.

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