Technical Analysis. Nasdaq 100,

This week we made some good mid-term NASDAQ 100 options trades (QQQQ trading would be very similar) where our professional trader was able to purchase calls based on some strong signals and what we published in our Market Commentary.

NOTE: This chart of the week is meant mainly for educational purposes only. We don't recommend that our customers follow these exact trades. We suggest that you develop your own trading style and try doing some paper trading before using our volume analytics.

Even though all the above trades were not entirely without risk, we came out on top with a profit of $15,771

Why buy expensive January Calls?
Even though January 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.

Can I play short on large VMA spikes?
We don't generally suggest that anyone play short during an uptrend in the market unless you are an experienced short-term trader. Since the market is in an uptrend, VMA spikes to the upside may sometimes have a lesser effect on causing the market to move lower. Therefore, if you do play short, we suggest that you do not overestimate the value of VMA spikes to the upside of an index.

Why did you leave one call option open?
We still have confidence that the market will move higher, and since the market has not shown any signs of reversing its current uptrend, we think it's a good idea to continue on the premise that the market will move higher still.

Should I Trade Options?
Only very experienced traders should trade options because of the high risk. You can always trade index shares instead of options and still make profits; returns will not be as large.

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.

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:

To see any of our past best trades, simply select from the list below.