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[EquisMetaStock Group] Re: The Squeeze



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Hi Sparkie,

Thanx a lot. You have done a wonderful job in explaining it so 
clearly.


--- In equismetastock@xxxxxxxxxxxxxxx, "sparkie1168" <sparkie68@xxxx> 
wrote:
>
> I will do my best.
> Have a look at NKE (US Market) and on the 9th of May 2005 you 
should 
> see the Bollinger Bands Squeezing together. This is the pattern I 
> look for.
> Then I look for a straddle or strangle trade using stock options.
> The following trade was placed on the 10th of May 2005
> Buy 1 July 05 85Call @ 45
> Buy 1 July 05 70Put @ 65
> Total Debit           110
> Trade Closed 15th of June 05
> Sell 1 July 05 85Call @ 400
> Sell 1 July 05 70Put @ 0.00 (or let it expire worthless)
> The above trade was a Strangle trade, buying a call above the stock 
> price and buying a put below the stock price. This Squeezing 
pattern 
> doesn't happen all the time but when it does some good non-
> directional trade opportunities can be taken. 
> 
> Hopefully this is helpful 
> 
> 
> 
> 
> --- In equismetastock@xxxxxxxxxxxxxxx, rkgirs <no_reply@xxxx> wrote:
> >
> > Can you slightly explain, how to use it actually?
> > 
> > --- In equismetastock@xxxxxxxxxxxxxxx, "sparkie1168" 
> <sparkie68@xxxx> 
> > wrote:
> > >
> > > Hi,
> > > For those of you who like to trade straddles/strangles with 
> options 
> > > one pattern that works well, is when the Bollinger Bands start 
> > > squeezing together.
> > > Have Fun with the Squeeze :- )))
> > > To find the Bollinger Band Squeeze with Metastock create the 2 
> > > indicators below: 
> > > 
> > > BollingerBandHistogram 
> > > X:= ((C+2*Std(C,13)-Mov(C,13,E))/(4*(Std(C,13)))*100); 
> > > Blue:=If(X>80,X,0); 
> > > Red:=If(X<80,X,0); 
> > > Blue; Red; 
> > > 
> > > BB Squeeze 
> > > If(Fml("BollingerBandHistogram")>45AND Fml
> ("BollingerBandHistogram")
> > > <55,1,0) 
> > > 
> > > Then create the below in your Explorer. 
> > > 
> > > Straddles/Strangles 
> > > EXPLORATION NOTES 
> > > ----------------- 
> > > Finds Stocks that have the Bollinger Bands Squeezing Together 
> > > CALCULATION PARAMETERS 
> > > ----------------------- 
> > > Periodicity: Daily 
> > > COLUMN FORMULAS 
> > > --------------- 
> > > ColumnA: Close 
> > > CLOSE 
> > > ColumnB: Squeeze 
> > > Fml("BB Squeeze") 
> > > ColumnC: 2DaySQ 
> > > If(Fml("BB Squeeze") AND Ref(Fml("BB Squeeze"),-1)=1,1,0) 
> > > ColumnD: 3DaySQ 
> > > If(Fml("BB Squeeze") AND Ref(Fml("BB Squeeze"),-3)=1,1,0) 
> > > ColumnE: 5DaySQ 
> > > If(Fml("BB Squeeze") AND Ref(Fml("BB Squeeze"),-5)=1,1,0) 
> > > ColumnF: 8DaySQ 
> > > If(Fml("BB Squeeze") AND Ref(Fml("BB Squeeze"),-8 )=1,1,0) 
> > > FILTER SOURCE 
> > > ------------- 
> > > Filter Enabled: Yes 
> > > Formula: 
> > > colA>20 AND (colB=1 OR colC=1 OR colD=1 OR colE=1 OR colF=1)
> > >
> >
>









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