I'm a newbie when it comes to options trading, but I intend to speak out my mind on all the major moves I make. I think it can keep me in check so I don't do something stupid, well at least not repeat the same mistakes.

Recently, I read Options Made Easy by Guy Cohen and I found it to be very useful. I understood the basic of options before, but now I think I really understand the different risk profiles. I've got the tools, but now I need to know when to apply them and how to use them.

My favorite strategy at this point is spreads. Especially Bull (Short) Put Spreads and Bear (Short) Call Spreads because of the following benefits:
time decay is on your side -- I hate to watch my stuff decline in value even when nothing happens
the underlying security does not have to move (lower volatility) and you still make the profitthe risk and reward are limited, so you can manage the risk betteryou can trade short term 3-4 weeks, so things remain exciting; I'm not much of a buy-and-sit-on-it-for-a-year kinda guy
This morning I bought April expiry QQQQ short call spread at the 45 strike, so as long as it stays below 45 I'll be happy. I was hoping to get on the 46 strike, but I mised it. I'm bearish on QQQQ because I don't see the tech-heavy NASDAQ having much of an upward probability as much as going down or moving sideways due to subprime/housing troubles, and the obviously 'landing' economy (soft or hard). Besides, tech. does not seasonally go up until later in the year. However, I'm afraid of Ben Bernanke chearleading the market tomorrow in his testimony, as he tended to do so far. What do you think? Is this a wise trade or am I taking up too much risk, so close to the strike (about 50% probability hitting strike) with 3 weeks left to expiration?

Well - I think sentiment is on your side. I probably would not extend this strategy into May though since, by May expiry, some Q1 earning reports will be coming out which can upset any trend. Just curious - what is the other leg of your spread at? You only mention the $45 leg.

I have been using the bull put credit spread to selectively get into some tech names that I think (hope) are at or near their short/intermediate term bottoms - most recently Intuit (INTU). I have never thought of playing the indexes though perhaps I should.

Anyway, good luck with all your trades.

To answer your question, I sold QQQDS (April 45 call) and bought QQQDT (April 46 call). I agree about May. If I do a similar bearish spread on an index I'll be more conservative. Technically, QQQQ has never crossed 46 for years, so betting on that not happening within the next couple of months seems reasonable to me. However, a major bullish factor would be the possibility of the Fed cutting interest rates in the next meeting, which I think would shoot the market up, in which case I would need to be careful with bear spreads.

This was my first index trade. I was more of a stock fundamentalist so far, but from now on I plan to mix the two (as long as both work for me)

What makes you interested in INTU? technicals or fundamentals?