X1 qqqq Trade JAN (closed +1.50 credits)

12/6 STO (2) JAN 46/49 PUT credit spread @.46
12/17 BTC (1) JAN 46/49 PUT credit spread @.67
equals a .21 debit

STO (1) JAN 52/56 CALL credit spread @.84
STO (1) JAN 53/56 CALL credit spread @.39
STO (1) JAN 54/58 CALL credit spread @.41

Total credit potential (with adjustment loss) = 1.89
Screen shot analysis is graph of JAN inventories only (excluding the main postion of long 100 qqqq stock and long JAN10 60 PUT)

I was able to capture 1.51 of the 2.20 potential credit for the DEC inventories. 2.57 is the extrinsic value/risk for the core X1 trade (long stock with LEAP long put) 2.57 - 1.51 = 1.06 extrinsic value risk remaining. JAN inventories carry potential of 2.36 credit. My goal is to eliminate the extrinsic value this month. Then trade very conservative thereafter, therefore holding a risk free long position in the QQQQ's.

12/21
We got a Santa Rally in the markets today and I am postioned to experience some pain around the 53 strike. I will take off my 52/56 verticle if Q's close above 53. This should be an approx. $100 loss point. My plan is to not loose more than I can take in for any given month. Took in 1.51 credit last month.

12/26/07
BTC (1) JAN 49/46 PUT verticle for .13
originally sold for .46
total credit .33
debit from (1) other 49/46 PUT verticle closed 12/17 for .21 debit
equals a credit of .12 for JAN so far.NOW holding only CALL credit spreads, negative deltas...still mentally keeping 53 as an adjustment point.

1/03/08
BOT +1 QQQQ JAN 08 54 CALL @.08 to close
did not sell the long call portion of the verticle as it is worthless, will keep on for a lottery ticket play
initial credit for 54/58 verticle was .41
total credit closed 54/58 CALL verticle for: .33
still holding:
(1) JAN 52/56 CALL credit spread @.84
(1) JAN 53/56 CALL credit spread @.39

Extrinsic Value to cover for married put postion is 2.57
DEC inventories took in a credit of 1.51
leaving .94 of extrinsic value/risk left to cover.
So far with JAN inventories have realized a .45 credit leaving only .49 left to gain this month for a risk free married put postion in the QQQQ's.

1/04/08
btc (1) 53 CALL @.11
credit realized for 53/56 CALL is .28
still holding:
(1) JAN 52/56 CALL @.41

1/07/08
btc (1) 52 CALL @.07
credit realized for 52/56 CALL is .77

TOTAL JAN CREDITS = 1.50
Potential credits for JAN were 2.56

TOTAL credit from DEC & JAN credits is 3.00 therefore relieving all extrinsic value and risk from the position. Next goal is to pay down the cost of the JAN10 long put total debit is 11.81 (subtract 3.00 credits = 8.81 left)
FEB inventories were placed today, will include on a new, seperate post dated 1/07/08