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Chart of the Week: NASDAQ 100 April 28, 2002
Our professional trader had some great trades over the past month. Based on our advice he was able to make over $15,000 in the last month!
Our professional investor played it safe over the past couple of weeks, only making 2 mid-term options trades. Nevertheless, those trades proved to be quite profitable, netting him over $15,000 (not including commissions). Based on our advice at the time, that the market is approaching it's resistance corridor, he knew that at points like this, the market can be quite volatile. Since the market was (and is) sill in the down-trend, he concluded that it would be safer to short the market rather than go long. His first trade (Sell1 / Buy1), was purchasing a NASDAQ 100 (NDX) Put Option for the strike price of 1,350. He based this decision on the fact that there was a moderate increase in the VMA while the index was moving up. When an index moves up and volume moves up, one can generally assume the index will fall once the VMA has peaked. This is conversely true for when the index is falling. Our professional investor's second trade was made on the same principle above, except that on April 22nd, he decided to place a stop-loss order set for 1,357. Unfortunately a short spike in the index the following day took his stop-loss order. He still made money, but not as much as if he waited for another large spike in the VMA. Nevertheless, it is always a good practice to have goals set for each of your orders so that you can place a stop-loss order as well. In both of the above trades, our professional investor constantly moved his stop-loss order lower to keep pace with the market. If the index at any point decided to jump, his stop-loss order would be taken and he would still be in a profitable position.
Based on MarketVolume's analysis, our professional investor was able to make the following returns:
Here is a detailed list of our investor's trades, which netted the above returns:
To see any of our past best trades, simply select from the list below.
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NASDAQ Polling Service Visit Sites: Options Trading Stock Market Sentiment Financial Glossary Stock Market |
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