Thursday, March 27, 2008

Thursday: BXN tattletale

Above are the daily charts of the QQQQ and the QQQQ/BXN, which reveal some interesting divergences between the price of the underlying and the performance of a buy/write strategy.
Above is the daily chart of the BXN, displaying the sudden and sustained drop in performance since the late December peak. Although the chart mirrors the peaks and valleys of the NDX, note the volatility of the BXN relative to the underlying.
Below is the symbol list for other interesting NDX (QQQQ) index indicators that can be set up on the free EOD SharpCharts.
If you'd like more info on understanding the dynamics and implications of the BXN, this is the site to check:

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