Technical Analysis. Nasdaq 100,

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.

NOTE: This chart of the week is meant primarily 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.

Even though all the above trades were not entirely without risk, we came out on top with a profit of $5,800

Why have you closed all your open call position while at the time stating in your market commentary that the index will probably move up?

We have closed all our call positions in order to play it safe. Keep in mind that in the short-term, the markets may encounter increased volatility, for instance the coming Friday is a triple-witching-day. Also, remember that options lose part of their (time) value as they approach expiration. We believe it is sometimes better to take a smaller (but guaranteed profit now), rather than hanging on for higher (potential) profits, especially when trading options.

Notes:

If you trade options, we recommend you invest only a small portion of your assets - an amount that will fit your personal trading needs and risk tolerance. In our opinion, that amount should be about 10% of your total portfolio; it should never exceed 30%.

At the same time, we do not recommend that you commit more than 30% of your options portfolio to a single trade. If the market doesn't move in your favor, but indicators remain strong, you may choose to invest another 30% of your options portfolio on a second signal, and perhaps even on a third signal. By proceeding in this way, each time you enter the market in a better position, and usually the profit from the last trade will more than compensate for the loss from your first  trade.

We would like to show the motivations that led to the above trades; therefore, we have created what we call a 'Table of Motivation': 

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:

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.