Monthly Trading Advisory Fill Report: QQQ Call Credit Spread Adjustment

www.BookingAlpha.com Trade Fill Report - Monthly Advisory: Date: 10/14/2011 Trade: QQQ Call Credit Spread Adjustment AutoTrade Broker Fill Status: eOption: Filled TradeMonster: Filled OptionsXpress: Filled InvesTrade: Filled GlobalAutoTrade: Filled TradeWallStreet: Filled TradingBlock: Filled TradeKing: Filled *All Brokers filled at the limit price of $0.10 and some as high as $0.12. *My own transactions executed at $0.10 & $0.11 Highlights & Reasoning: The bounce off the the lows LAST WEEK has come very far very fast. While the market is overbought one must respect the price action as that is all that truly matters. I do expect a pullback or AT LEAST a consolidation of the gains. However, in the meantime, the earnings pump is in full force so I need to adjust our position to maintain proper risk management. Adjusting up one strike but out to Nov provides some more breathing room to let the rally run another couple percent while generating a large credit for the adjustment. This large credit allows much flexibility for further adjustments or to close early once the earnings pump is over and the volatility premium decays. Even a small pullback will allow for a decent decline of the option premiums allowing for an early closure and profit taking. If the rally continues unabated, then we have a large credit to allow for further adjustments if required.