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Best Mid-Term Trade
October 24th, 2003
Our mid-term index options trader traded QQQQ
options for this best trade of the week, but one could have traded
NASDAQ 100 index shares or options using the same method. These trades
were based on strong volume indicators and Market Commentary.
NOTE: This chart of the week is meant mainly for
educational purposes. 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.
|
Security |
Return |
| Call #1 (QQQQ November) |
+31.25% |
| Call #2 (QQQQ November) |
+26.67% |
|
Total Profit: |
+$7100 |

Even though all the above trades were not entirely without
risk, we came out on top with a profit of
$7100
Should I Trade Options?
Only very experienced traders should trade options because of the high risk
involved. You can always trade index shares instead of options and still make a
decent profit, but returns will not be as large.
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. Only very experienced traders should trade options
because of the high risk involved. You can always trade index shares instead of
options and still make a decent profit, but returns will not be as large.
What is a 'VMA spike to the upside' (resistive volume)?
Simply put, that means that most of the volume spike was connected with the
index while it was moving up.
We would like to show the
motivations that led to the above trades; therefore, we have created what we
call a 'Table of Motivation':
|
Trade |
Volume Motivation |
Market Commentary on Members Home Page during
the trade |
Buy Call #1
10/9/2003 |
During the market's
decline in the afternoon, it encountered a large supportive VMA spikes to
the downside at 13:15 and 14:45. |
We believe that today's supportive volume
will lend to the market's mid-term up-trend. |
Sell Call #1
10/16/2003 |
As the market
moved higher, it encountered a large resistive VMA spike to the upside at
13:00. |
We believe that today's resistive volume to
the upside could contribute to a short-term correction. |
Buy Call #2
10/17/2003 |
As the market
continued to decline, it encountered several more supportive VMA spikes to
the downside at 13:40, 14:30 and near the end of the day. |
We believe that today's supportive volume
could cause the market to move higher mid-term |
Sell Call #2
10/21/2003 |
At 12:00, as the
market moved higher, it encountered a large resistive VMA spike to the
upside. |
We believe that the market can move lower
in the short-term as it has not reacted to recent resistive VMA spikes
to the upside |
Buy Call #3
10/24/2003
Left opened |
As the market
continued to decline, it encountered a very large supportive VMA spike at
12:40, which caused the market to change its short-term downtrend and rally
throughout the rest of the day. |
We believe that today's supportive volume to
the downside should help the market move higher in the mid-term |
The same principles mentioned above also work for trading the
NASDAQ 100, S&P 100, Dow Jones, as well as other indexes.
Here is a detailed list of our investor's trades, which netted
the above returns:
|
Date |
Trade |
Strike |
Expiration |
Contracts |
Contract
Price |
Amount |
Profit |
| 10/9/2003 |
Buy Call #1 |
$34 |
November |
70 |
$1.6 |
-$11200 |
|
| 10/16/2003 |
Sell Call #1 |
$34 |
November |
70 |
$2.1 |
+$14700 |
+$3500 |
| 10/17/2003 |
Buy Call #2 |
$34 |
November |
90 |
$1.5 |
-$13500 |
|
| 10/21/2003 |
Sell Call #2 |
$34 |
November |
90 |
$1.9 |
+$17100 |
+$3600 |
| 10/24/2003 |
Buy Call #3 |
$34 |
December |
100 |
$1.3 |
-$12500 |
Not
Closed |
|
Total: |
+$7100 |
To see
any of our past best trades, simply select from
the list below.
|
Date |
Indicator |
|
December 21, 2003 |
QQQQ Options |
|
December 14,
2003 |
QQQQ Options |
|
December 7,
2003 |
QQQQ Options |
|
November 30,
2003 |
QQQQ Options |
|
November 23,
2003 |
QQQQ Options |
|
November 9, 2003 |
QQQQ Options |
|
October 31,
2003 |
QQQQ Options |
|
October 24,
2003 |
QQQQ Options |
|
October 17,
2003 |
QQQQ Options |
|
October 10,
2003 |
S&P 500 (SPX) |
|
October 3, 2003 |
QQQQ Options |
|
September 25,
2003 |
QQQQ Options |
|
September 16, 2003 |
QQQQ Options |
|
September 11,
2003 |
S&P 500 (SPX) |
|
September 5,
2003 |
S&P 500 (SPX) |
|
August 27, 2003 |
QQQQ Options |
|
August 15,
2003 |
QQQQ Options |
|
August 4,
2003 |
QQQQ Options |
|
July 28, 2003 |
NASDAQ 100 |
|
July 25, 2003 |
S&P 500 (SPX) |
|
July 12, 2003 |
NASDAQ 100 |
|
July 2, 2003 |
NASDAQ 100
(NDX) |
|
June 27, 2003 |
NASDAQ 100
(NDX) |
|
March 28,
2003 |
NASDAQ 100
(NDX) |
|
March 11,
2003 |
NASDAQ 100 |
|
March 4, 2003 |
NASDAQ 100
(NDX) |
|
February 12,
2003 |
NASDAQ 100
(NDX) |
|
February 4,
2003 |
S&P 500 |
|
January 29,
2003 |
S&P 500 (SPX) |
|
January 24, 2003 |
S&P 500 |
|
January 22,
2003 |
NASDAQ 100
(NDX) |
|
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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