Rules are trade options on SPY I.T.M. calls for long, puts for short.
Enter; when Wednesday or any day after wends trades above for Calls/below Puts mon-tues range. 20-22 points on the ES is 1 point in nearest ITM options.
Exit; when you have 40 points (roughly 1.8-2 option points, depends on $VIX) or 3:00 Friday afternoon which ever comes first. Or when the SPY trades over the opposite high/low

We'll use the ES as an example. The week of;
12/29.....+40 points
1/05......+22 points
1/12......+40 points
1/19......No trade
1/26......-25 points Wide range Mon-tues trading
2/02......+40 points
2/09......-10 points Wide range Mon-tues trading
2/16......+10 points
2/23......-30 points
3/02......+25 points
3/09......+25 points
3/16......-10 points
3/23......Flat trade
3/30......+20 points

Total +147 points since start of 2009. Thats +7350 for the ES with one contract. With a max draw down of 1500.

Or my favorite with options would netted about 7 points with options depends on price of $VIX. With a draw down of about $1100. But the Amount to trade the same is much less than the 6400 that it take to trade the ES. about $2200 would get you 10 options on the SPY which would equal one ES.

I have been trading this for a while. Over a year and it works well with a few indicators and scaling in/out helps a bit as well....

Joe,

I have dealt with futures but not with options in it. Is there any site that you recommend for reading up on it? The terminology, costs, etc?

Check out www.CBOE.com and cboetv are pretty good.

Sorry, i'm a bit confuseed on the rules. Is it the the SPY that must break its Mon/Tues range...then enter long/short via the corresponding ITM call or put? Or is it the individual call or put Mon/Tues range that must be exceeded?

The underlining, in this case its the SPY (S&P spyders)