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Best Short Term Trade: May 1st, 2002
Our analysis of volume over the past week has
resulted in the following trades using QQQQ Options by our
conservative long-term trader.
|
Security |
Return |
| Call 1 (QQQQ June) |
-46% |
| Call 2 (QQQQ June) |
+132% |

Even though not all the above trades were
profitable, we still came out on top with a profit of 86%
Why deal in Options?
Options offer the potential of a high short-term
return. Compared to futures, options are less risky, and don't require as much
capital to trade. Those who trade options should reduce the risk by only trading
options that are at least two or three months away from expiration, or as
liquidity permits.
Why buy Call Options?
MarketVolume has recently seen volume signals that
indicate we are in a support corridor, and since we bought June QQQQ options, we
don't need to worry as much about short-term fluctuations as with futures, or a
May call option.
We would like to make it clear to our members
what the motivation was to make the above trades; therefore, we have created
what we call a 'Table of Motivation', in which we try to make it clear the
motivation that was behind each of the above trades.
|
Trade |
Motivation |
MV's Commentary on
Members Home Page during the trade |
|
B1 Call |
1. There was a large volume spike
as the index was declining
2. There were several concurrent volume spikes as the index was
declining prior to making this trade. |
1. The market is still in it's
support corridor. |
|
S1 Call |
1. The stop-loss order that was
placed for QQQQ was executed as the index declined further.
2. If on the way down there is a
very large volume signal, buy QQQQ options at a lower price. |
1. The market needs to see a
large increase in the 1-day VMA before moving up. |
|
B2 Call |
1. Two very large spikes in the
VMA indicated this was an excellent point to purchase QQQQ options. |
1. The market could make a quick
move upwards due to a 'shot squeeze'
2. The market is still in a
support corridor. |
|
S2 Call |
1. As the index rose, there were
2 moderately large spikes in the VMA, which indicated the upward trend
of the index will likely stop. |
1. The market could jump up in
the short-term. 2. There
is not enough volume to justify that the market has hit it's actual
support level, and therefore could continue moving down. |
To see
any of our past best trades, simply select from
the list below.
|
Date |
Indicator |
|
December 30, 2002 |
NASDAQ 100 |
|
December 19,
2002 |
S&P 500 (SPX) |
|
December 10, 2002 |
NASDAQ 100 |
|
November 27, 2002 |
NASDAQ 100 |
|
November 20,
2002 |
NASDAQ 100
(NDX) |
|
November 13, 2002 |
NASDAQ 100 |
|
November 6,
2002 |
S&P 500 (SPX) |
|
November 1, 2002 |
NASDAQ 100 |
|
October 25,
2002 |
S&P 500 (SPX) |
|
September 25, 2002 |
NASDAQ 100 |
|
September 18, 2002 |
S&P 500 |
|
September 6,
2002 |
S&P 500 (SPX) |
|
August 21
2002 |
NASDAQ 100
(NDX) |
|
August 14
2002 |
S&P 500 (SPX) |
|
August 7,
2002 |
S&P 500 (SPX) |
|
July 31, 2002 |
NASDAQ 100
(NDX) |
|
July 24, 2002 |
NASDAQ 100
(NDX) |
|
July 17, 2002 |
NASDAQ 100
(QQQQ) |
|
July 10, 2002 |
S&P 500 (SPX) |
|
June 26, 2002 |
NASDAQ 100
(QQQQ) |
|
June 14, 2002 |
S&P 500 |
|
June 12, 2002 |
NASDAQ 100
(QQQQ) |
|
June 5, 2002 |
S&P 500 (SPX) |
|
May 31, 2002 |
S&P 500 |
|
May 29, 2002 |
NASDAQ 100
(QQQQ) |
|
May 22, 2002 |
NASDAQ 100
(QQQQ) |
|
May 17, 2002 |
S&P 500 |
|
May 15, 2002 |
NASDAQ 100
(QQQQ) |
|
May 8, 2002 |
S&P 500 (SPX) |
|
May 3, 2002 |
NASDAQ 100 |
|
May 1, 2002 |
NASDAQ 100
(QQQQ) |
|
April 28, 2002 |
NASDAQ 100 |
|
April 22, 2002 |
NASDAQ 100 |
|
April 3, 2002 |
S&P 500 |
|
February 25, 2002 |
S&P 500 |
|
February 8, 2002 |
NASDAQ 100 |
|
January 30, 2002 |
NASDAQ 100 |
|
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