Technical Analysis.

For the last week, we made some good short-term S&P 500 options trades  in which our professional trader was able to purchase puts based on strong volume signals and our  published 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 $7,680

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.

Why did you open two more positions right after a very positive State of the Union address?
Because MarketVolume, in its Market Commentary, still believes that the market is in a downtrend and will soon continue on that trend. There were two significant resistive VMA spikes to the upside as well, and these spikes also aided in the decision to open two more positions. Even if the market moves higher in the short-term, we purchased options that don't expire for three months, thereby reducing our risk.

Why didn't you sell PUT 1 on the first VMA spike to the downside?
We decided not to sell because we didn't believe that that volume spike was enough to counter the many cumulative resistive VMA spikes we had previously seen. At best, that VMA spike could have caused a short-term move up, but not for more than a day. We sold on the second VMA spike because, added with the previous spike, it could cause the market to move higher in the short-term.

I trade the NASDAQ 100 / QQQQ. How does this apply to me?
The S&P 500 and NASDAQ 100 indexes have generally the same behavior. If you overlaid a chart of each of them during a short period such as this one, their general dynamic would be the same. Because of this, you can trade NASDAQ 100 index shares and options. You can probably make more money doing so because the NASDAQ 100 is more volatile.

Should I try to paper trade before trading options?
Yes! We suggest that anyone who is new to our signals and analysis try doing some paper trading to start, at least until they are comfortable with interpreting our signals.

Why buy puts that are so far 'out of the money'?
The reason we decided to go with April SPX puts with a strike of 725 is simply because those happened to be the most liquid (easy to buy and sell quickly at a reasonable price) put options available for March.

We would like to make it clear to our members what the motivations were that lead to 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 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.

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