|
|
 |
Best Short-Term Trade
December 7st, 2003
Our short-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.
This week's Best Trade of the week
is a
continuation on our
previous "Best Trade"
where we left a QQQQ Call position open.
This trade was closed with 38.46%
of profit.
NOTE: This trade 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.
In this trade of the week
the trade "Buy QQQQ Call #1" is opened
in order to close it later with profit
if the index moves in our favor.
|
Security |
Return |
| Call #2 (QQQQ January) |
+38.46% |
| Put #1 (QQQQ January) |
+35.29% |
|
Total Profit: |
+$7,600 |

Even though all the above trades were not entirely without
risk, we came out on top with a profit of
$7,600
Notes:
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 #2
11/26/2003
Was left opened
last week |
As
the market moved lower, it encountered a couple moderately large supportive
VMA spikes to the downside at 11:00 and 11:45. |
Based on Monday's resistive volume to the upside, the market may move lower
in the short-term. In the mid-term, however, we still see the market
moving higher as we have not seen any significant resistive VMA spikes
to the upside. |
Sell Call #2
12/01/2003 |
As
the market opened, it encountered two resistive VMA spikes to the upside,
which, at 10:15 |
Based
on the small resistive volume today and Wednesday's resistive volume, the
market could move slightly lower in the short-term. |
Buy Put #1
12/03/2003 |
After about 10:15 the market began to move higher throughout the rest of the
morning. During this move, the market generated two large resistive VMA
spikes to the upside at 11:45 and 12:45. |
There is a chance that in the short-term market could go lower.
|
Sell Put #1
12/04/2003 |
As
the market started a downward move from an early high at around 11 am,
supportive volume built in 3 stages, culminating in the large VMA spike
seen around 2 pm. |
We
believe that the markets have room yet to move higher over the medium
-term, although there may be some short-lived declines (due to the
resistive volume encountered during the market's afternoon rally). |
Buy Call #1
12/05/2003
Left opened |
Today’s largest VMA spike occurred around 1:45 p.m. It was clearly
supportive to the downside. |
We
believe that the markets are in an accumulation phase, “collecting” more
supportive volume to prepare for a near-term up move. |
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 |
| 11/26/2003 |
Buy Call #2 |
$35 |
January |
80 |
$1.3 |
-$10400 |
|
| 12/01/2003 |
Sell Call #2 |
$35 |
January |
80 |
$1.8 |
+$14400 |
+$4,000 (+38.5%) |
| 12/03/2003 |
Buy Put #1 |
$35 |
January |
120 |
$0.85 |
-$10200 |
|
| 12/04/2003 |
Sell Put #1 |
$35 |
January |
120 |
$1.15 |
+$13800 |
+$3,600 |
| 12/05/2003 |
Buy Call #1 |
$35 |
January |
80 |
$1.3 |
-$10400 |
|
| Not Closed |
Sell Call #1 |
$35 |
January |
80 |
- |
- |
Not
Closed |
|
Total: |
+$7,600 |
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 |
|
|
 |
|