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Best Short-Term Trade: August
21st, 2002
This week our professional trader was able to
capitalize on our volume signals for the NASDAQ 100
index.
|
Security |
Return |
| Call 1 (NDX Sept) |
+28.3% |
| Call 2 (NDX Sept) |
Holding |
|
Total Profit: |
+$12,950 |

Even though all the above trades were
somewhat risky, we came out on top with a
profit of
$12,950
Why do you only have positive trades?
The main reason we have had only positive trades is simply because we
have been only been making trades consistent with the market trend, which is
currently up. All if our members have access to daily updated market
commentaries that explain in full detail the current market trend and what
type of short-term fluctuations to expect.
Why buy expensive October Calls?
Even though October Call options are more
expensive, they tend of 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. Also, if the uptrend
continues on a long-term, one can hold these options for a longer period as
they increase substantially in value.
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 |
| Buy Call 1 |
MarketVolume's Market Commentary states
that the market is currently in an uptrend, and the fact that today
there was a very large amount of volume to the downside which made an
excellent entry point. |
Today the market opened lower but
was able to recover most of it's losses for the day, but we saw some moderate
volume to the upside which could cause the S&P 500 and NASDAQ 100 indexes move
lower in the short-term. |
| Sell Call 1 |
Due to the large volume spike to the
upside of the index, found that the best option would be to play it
safe and close all open positions |
Today the S&P 500 and NASDAQ 100 indexes
moved quite a lot lower due to the cumulative effects of volume to the upside
over the past several days. Today there was quite a lot of supportive volume to
the downside signaling that there is a chance for the indexes to move higher
soon and perhaps continue their uptrend. |
| Buy
Call 2 |
Even though the volume at the entry
point for this trade was not very high, decided that the fact that the
market is still in an uptrend was justification enough to open a new
position. |
Due to the fact that the market is in an uptrend
it's beginning to look like we have to apply less weight to volume to the
upside, but we cannot discount the volume to the upside. We still believe the
market is in an uptrend, but will have to have a shot-term correction soon. |
The same principles mentioned above works
for trading S&P 500, S&P 100, Dow Jones, and other indexes.
Here is a detailed list of our investor's
trades, which netted the above returns:
|
Date |
Put/
Call |
Ctrcts |
Contract
Price |
Index
Value |
Strike |
VMA |
Amount |
Profit |
| 8/13/02 |
B C1 |
10 |
$45.68 |
925.63 |
975 |
1,870,600 |
$45,680 |
|
|
8/14/02 |
S C1 |
10 |
$58.63 |
959.71 |
975 |
2,132,000 |
$58,630 |
$8,700 |
| 8/20/02 |
B C2 |
5 |
$49.34 |
1,007.60 |
1,050 |
1,461,900 |
$24,670 |
Holding |
|
Total: |
+$12,950 |
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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