Around noon ET (nearly every market day), one new type of option (mostly
calls) is issued
as signal to be considered for buying. Only 3 simple strategic rules
exist,
because most of the strategy is incorporated in the quality of underlying
stocks
of the option contracts.
- Enter the current signal option contract with 15% of your equity
every day
(early afternoom ET mostly) at market price.
That way, max 15% of your total account value is at stake.
Remember, every option contract costs 100 times the indicated quote.
- To protect the position from excessive downside, a 50% stop-loss has to be used.
(starting Oct 4th 2007)
- Exit 1 week after entry (same time) or 1 day later if the exit
day is a market holiday.