Technical Analysis.

This week our professional trader decided to take part in some volatility in the market by buying puts even though MarketVolume mentioned this is the beginning of an uptrend. He was able to capitalize on a large amount of volume to the upside of the S&P 500 index which signaled that the market would move lower.

Even though all the above trades were very conservative, we still came out on top with a profit of $12,980 over a couple of days!

Why buy expensive September Puts?
Even though September Put options are more expensive, they tend to be less volatile in reaction to market swings, and they don't devalue as quickly as a current month option. By trading options that are at least one month ahead, we protect ourselves from unforeseen short-term fluctuations in the market.

Puts were purchased not to go against the trend, which MarketVolume said we were in the beginning of an uptrend, but to simply make a profit off a short-term movement down, as a large amount of volume to the upside signaled a short-term downward move.

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 Put a 'Table of Motivation', in which we try to make it clear the motivation that was behind each of the above trades.

The same principles mentioned above works for trading NASDAQ 100, S&P 100, Dow Jones, and other indexes.

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.