OPTIONS TRADING and TIGERSOFT"

                         BULLISH SPREADS
        
                                               9/29/2009
                              (C) 2009 William Schmidt, Ph.D. 

  A bull call spread is obtained by buying a call option with a low exercise price, and selling
  another call option with a higher exercise price. Both calls must have the same underlying
  security and expiration month   An example. Assume XYZ is currently 100.   Assume the
  call option with a strike price of $100 can be bought for $3 per share, or $300 per contract,
  while a call option with a strike price of $115 is selling at $1 per share, or $100 per contract.
  A trader can then buy a long position on the $100 strike price option for $300 and sell a
  short position on the $115 option for $100. The net debit for this trade then is $300 - 100 = $200.
  This is the most a buyer of this spread can lose.  The trade is profitable if the stock closes
  on expirtion above $102. If the stock's closing price on expiration is $110, the $100 call
  option will end at $10 a share, or $1000 per contract, while the $115 call option expires
  worthless. Hence a total profit of $1000 - 200 = $800. In summary, the trade's profit is limited
  to $13 per share, which is the difference in strike prices minus the net debit (15 - 2). The
  maximum loss possible on the trade equals $2 per share, the net debit.

  The best and, by far, simplest way to find stocks that should be used for this approach is
  to take NASDAQ-100 stocks, or other stocks which are optionable, and run the Tiger ANALYSIS
  program and employ it with stocks the Tiger program finds to be "BULLISH".  These will
  be stocks having a top Power-Ranking that are above the rising 50-day ma when the Peerless
  system is on a Buy.  They should have rising CLosing Power Lines, too.  A Closing Power that
  is making a new 12 month high ahead of price is considered a prime candidate here.   So is a
  stock making a flat topped breakout or a stock with levels of current Accumulation over +.25.
  But the further up any of these stocks is arefrom the 50-day ma, the bigger the risk, since in a
  weak market, many stocks will retreat to the support of the rising 65-day mal.

  Using the "BULLISH" screening criteria we get a good working list for stocks that
  should be profitable using this approach.  Below is a list of the "bullish" rated stocks
  in the middle   of March 2009,  April 2009, May 2009, June 2009, July 2009, August 2000,
  September 2009.    The top 7 Bullish stocks are only considered here, for brevity's sake. 
  In actual trading, other ranked   "Bullish" should be considered.

                                            March 13, 2009

  HANS  36.99 still on red 5-day Stochastic
   NFLX  39.37  IP21<0 on rally to Feb high. 40 is 12 mo high.  Closing Power is making NHs

                                                                 March 13, 2009

 
                                                               September 29, 2009



TEVA  45.39  IP21 is barely positive. On red Buy.  49 is 12 mo high.
                                                             Closing Power making 12 mo highs.

                                                                       March 13, 2009


                                                                       September 29, 2009


BRCM  19.11 IP21 <0 but strong CLosing Power.  30 is 12 mo high.  Lots of upside potential.

                                                                     March 13, 2009
  AMZN  68.83  Closing Power close to making 12 mo high, even though 12 mo price high is at 91.

 
                                                           September 29, 2009
 


                                                                  April 15, 2009
NFLX   46.59  on red Sell from 5-day Stochastic that has gained 150.6%
                         12-month high confirmed by Blue Closing Power.
                         All sysems are rated bullish, but IP21=.12
ORLY    36.66 -.NH by prices and Closing Power.  Current AI over .25
AMZN   74.71  Closing Power NH... 12-mo high=91
HANS   35.82  Stalling out at 37 resistance.  CP strong.  37 would be breakout.
ROST    38.83  42 was 12 mo high.  CP NH
LRCX    25.62  43 is 12 mo high.  All Bullish conditions.
CTSH    22.48  Current AI les than .25.  Rel Strength  was rated "bearish".  37 was 12 mo high.


                                                                   May 15, 2009
HANS   42.61   Current AI over +.25  on NH.  CP lagged last high.
CTSH    25.76   Current AI less than .25.  All ratings were "bullish"
SBUX   12.92   Previous bulge of AI to .36  CP strong.
JNPR    21.56   Current AI = .19    CP cmade NH even though 12 mo high was .28

                                                                
                                                                   June 15, 2009
MXIM   16.31  Current Accum over .28   CP at NH despite 12 mo price at 23.
JNPR    23.68   Current AI = .05    CP cmade NH even though 12 mo high was .27
NTAP   19.82   Current AI=.20   CP bacl to 12 mo high despite prices 7 points below 12 mo high.
CTSH    25.81   Current AI less than 0 .  (not bullish at this point)
AMZN   83.18  Current AI =.25...Closing Power NH... 12-mo high=91
SBUX   14.12   Previous bulge of AI to .36  CP at 12 mo high.
MRVL   12.47  Current AI =.26  .. CP rising but not at 12 mo high.   All indicators were "bullish"
QCOM  44.31  Current AI=.39  CP back to 12 mo highs,  Price's 12 mo high =57.


                                                                   July 15, 2009
AMZN   84.15  Current AI =.12...Closing Power close to NH... 12-mo high=91
NTAP   20.92   Current AI=.22   CP 12 mo NH, despite prices 6 points below 12 mo high, at 27..
JNPR    25.19   Current AI = .05    CP made NH even though 12 mo high was .27
MXIM  16.91    Current AI = .10    CP made NH even though 12 mo high was .23
SBUX   14.42   AI<0    CP at 12 mo high.
MRVL  12.74   AI<0  but stock did rebound from rising 50-day ma
QCOM  46.06  Current AI=.12  CP at 12 mo highs,  Price's 12 mo high =57.



                                                                   Aug 15, 2009
NTAP   23.59  Current AI=.22   CP 12 mo NH, despite prices 6 points below 12 mo high, at 26
                         All indicators were bullish.
JNPR   24.61  Current AI=.20   CP has made 12 mo high despite price high being 27.4
BRCM  26.67  Current AI = .31  CP had been making 12 month highs ahead of price.
                        Bulge of AI reached .50 two weeks earlier.
SBUX   14.42  Current  AI = .40     CP and price make 12 mo high.  All indicators rated Bullish,
MRVL  13.69  Current  AI= .20   OBV and Rel Strength rated "bearish"
MXIM  18.71 Current  AI=.25    CP making 12 mo highs.  12 mo Price high = 22.
EXPE   22.12  Current  AI=.32  CP and price making 12 mo high.   All indicators rated "bullish."
AAPL  166.78 Current  AI=.20  All indicators rated "bullish."
CTSH  34.43  Current AI=.22  CP and prices making 12 mo high. All indicators rated "bullish."


                                                                   Sept 15, 2009
NTAP   24.72   Current AI=.04   CP and prices made 12 mo NH All indicators rated "bullish."
JNPR   26.95    Current AI=.15   CPand prices made 12 mo high 
BRCM  26.67  Current AI = .21  CP making 12 month highs with price.
                        Bulge of AI reached .50 two weeks earlier.
SBUX   19.79  Current  AI = .23     CP and price making 12 mo highs . 
MRVL  16.21  Current  AI= .14   OBV and price making 12 mo highs .
                         All indicators rated "bullish."
MXIM  19.23  Current  AI=.25    CP making 12 mo highsahead of price at 20.

EXPE   23.71 Current  AI=.20  CP and price making 12 mo high.   All indicators rated "bullish."
AAPL  175.16  Current  AI=.16  All indicators rated "bullish."  Steadily rising CP.
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      STEPS TO TAKE TO USE TIGERSOFT HERE.

                     Update Your Data with TigerSoft

Updating the data in NASD-100 (where many optionable stocks are).
Go to the Tiger Data Page from Tiger's blue, eight button Peercomm screen.

1. Double-Click Icon for TigerSoft to get to PERCOMM screen.
2. Click Internet button
3. Replace the "0123" between the slashes with the current Data address.
    Presently, the current IP21 address is "34567"
    The result shoud be that the line says "http://www.tigersoft.com/34567/index.html

     When this change is made, click "Display Web Page Chosen above".
      Note that you also enter this address in your internet surfer to go to the Data Page.

     The top of the page will say "Tiger Data and Help Page".
     Become familiar with this page.  This is the easiest place for you to update your stocks
     each night.

     Find near the top of the page:
             Quickie Downloads of Most Requested Data:
        PEER04.exe     DATA.exe     DJI-30.exe       HOTSTKS3.exe   NASD-100.exe      SECTORS.exe
        More downloads are available on this page. including OPTIONS.exe

        Open by clicking on the link - NASD-100.exe
        You may be able to run this file right from the web-page. If not save it it to your computer
         and then run it. Be sure that you see the Tiger image on your computer and the installation
         taking place.

         When with download, click "Finish".
         That should take you back to the Tiger Data Page where you can download other Data. .

          Next click the "X" at the top of the screen.  That should take you back to the PEERCOMM
          screen.  If not find the Tiger PEERCOMM icon on your desktop and double click it.

          That takes you to the 8 button blue screen that is the starting pount for TigerSoft


                                      SELECT THE CORRECT DIRECTORY

          From the Peercomm screen click Select. Use the vertical scroll bar on the left and click "nasd-100"
          and then "OK".

          Read the second line on the Peercomm page.  It will tell you the current assumed directory.
         
          It should now say   "Current data directory: c:\nasd-100   101 symbols, updated mm/dd/yy
          The last completed trading date should be there or the previous trading day's date if it is before
          6:30 PM.

                                              RUN Tiger's Power-Ranker

         From the Peercomm screen click   ANALYZE  The program takes a few minutes.
         When it is finished, click on the button that says "Go to Main Tiger Menu for Ranking and Graphs".
         Unfortunately, this takes you to the older TigerSoft program.  So, click the "X" at the upper right.
         That takes you to the Peercomm screen.

                             Run Peerless-2008 (current main graphing program)

         Click the Peercomm button on the upper right.  This is the current Peerless/Tiger program.
        
         Click Daily Stocks and from the middle section, choose
                        "Bullish  12.            Top Power Ranked Stocks."
         You should get a chart that looks like this.



          Place the signals on the screen using "Signals-3" and "Buys/Sells Compatible with 590day ma"
          Use the first HELP selection to see the meaning of the signals.  
          Read also "Indicators, Terms and Concepts".and "Evaluating Stocks Already Owned."
        
          Superimpose the Peeless signals to be sure that we do not have a new major Sell.
          Use "Signals-1" and "Superimpose DJI Saved Signals."



         Look a whether the public is bullish (rising Openings) and if the professionals are bullish
    (CLosing Power).   An uptrend of Closing Power is essential to assure us that the stock's
     uptrend is strong.  Click Operations and Restore Simple Bar Chart. 
     Choose the first item under Indic.3   at the Tiger Basis of Moves.
     Note the warning at the lower left of the resulting chart: "Closing Power below its Falling MA".
     I would not be bullish on the stock at this point. The Buy B21 shows you the bullish Both-Up
     condition.  When the CLosing Power subsequently breaks its uptrend, look for a retreat.

     Draw a 65-day ma.using using Mvg Avg at the top. It would be better to become bullish
     when the stock is closer to the rising 65-day ma's support.


        

                              Get Next Stock - (Lower and Lower Power Ranking)

          Be sure your keyboard's Num-Lock key is off.  and click the "2" key on the right side.  This
          takes you to the next stock.