OWSOSB straddle: + 29% 13 days

Credit: Option Wizard® Simplified Options Strategy (SOS) Backtester.

7/19/2011 11:06:54 BOT SPY 100 AUG 11 133 PUT @3.25 NASDAQ
7/19/2011 11:17:19 BOT SPY 100 AUG 11 133 CALL @1.96 CBOE
8/1/2011 13:00:23 SOLD STRADDLE SPY 100 AUG 11 133 CALL/PUT @6.20

Potential for snapback rally if D.C. avoids ritual suicide....I'm thinking they will....we'll see, in any case, it is the right thing to do and the right time to exit....

SPY from 135 handle to 131 in a heartbeat

Starting from June 28, overbought situation in SPY as "described" by new Option Wizard® Simplified Options Strategy (SOS) Backtester.

The "red lights" were "on":

94	22	286	Tue-28-Jun-11	129.61
96	41	314	Wed-29-Jun-11	130.72
96	66	352	Thu-30-Jun-11	131.97
98	90	432	Fri-1-Jul-11	133.92
95	97	479	Tue-5-Jul-11	133.81
96	97	481	Wed-6-Jul-11	133.97
93	97	478	Thu-7-Jul-11	135.36
67	93	449	Fri-8-Jul-11	134.4
8	81	359	Mon-11-Jul-11	131.97

Backtesting Options Strategies

Our feature appears in July issue, TECHNICAL ANALYSIS OF STOCKS AND COMMODITIES. Page 38-41. Available at newsstands or traders.com.