Binary Options Trading Entry For Friday 5-23-2014

Unfortunately this is going to be short and to the point today. For one reason being that we only made three standard high/low traders for the entire day’s trading. And, more importantly, we somehow seem to have lost or erased the screenshots for all the trade charts for our traded underlying assets. Even worse, we waited an entire extra day to write and publish our binary options trading for Friday. Our lack of a photographic memory (or much of a short-term memory at all for that matter) means that we can only remember the barest of details behind the trades made. All we can do then is our best, and that will have to be good enough for today’s journal entry.

s&p500 index daily chart for 5-23-2014

That good old standby, the S&P500 Index is far and away our preferred proxy for overall market conditions in the US, and to some degree even the other major global indices. Here we have once again reached new all-time highs for the index, finishing at just over 1,900 for the first time in history. It did not, however, even remotely break that level with any degree of confidence or commitment. Indeed, it actually ended the day at the closing bell in the midst of a pullback, however small. Now nobody though that breaking that nice, round 1900 level was going to  be easy. Especially after the amazing bull run we’ve already had over the last couple years. After all, this pace cannot last forever, and markets must at some point experience a rather devastating correction (given the large magnitude of the run-up).

With all of the above said, we personally will be moving into a decidedly bearish stance as markets move into next week’s action. We’re just not convinced that the “big money” that moves these markets is quite ready to push all-in on breaking that 1900 mark quite yet. We believe that they, like ourselves, remain in a fairly cautious mode, waiting for US and Global markets, as well as their trusted political economy interpreters/advisors to provide them with more information about where we might be going from here. It is in many ways a completely different economic and global financial situation which we currently find ourselves in, and there are no easy answers. We’re essentially flying blind here, regardless of what your politicians or talking heads may be saying to the contrary.

s&p500 index weekly chart week ending 5-23-2014

Binary Options Trading Summaries For Friday 5/23/2014

Well, not much to say here. Which is, of course, why we populated much of this entry with general market commentary and analysis. But, we did make a few trades on our Boss Capital account, and even though we don’t have chart images, or remember much of the rational for the trades at the time, we do have the outcomes and daily totals. So, let’s get to it shall we?

binary options trading with boss capital for 5-23-2014

We only made a total of three trades today, all of them of the standard high/low binary options variety, and all of them for the same investment amount of $100 even. The one other thing which all three trades had in common? Well, they all finished ITM by expiry for triple profitability. Can’t complain about that. And it’s one of the reasons we just called it a day at that and moved on to other things besides trading. Oh yes, they were also all short-run bullish index plays on the three biggest US indices. Let’s take a closer look now (sorry the image came out a bit light and hard to see).

boss capital binary options trading daily investments history

Binary Options Trading Summary For 5/23/2014

Even though we don’t have charts and pre-trade analysis for these trades we will still just break them each down and work that into our totals and ROI numbers for the day. It will be short and sweet today.

DOW Jones High/Low Call Option Trade Summary

Trade Outcome: ITM
Entry Time / Expiry:
 10:49:11 / 13:00:00 (in PST time)
Investment: $100.00
Returns Offered: 75%
Entry Rate / Expiry Rate: 16,597.65 / 16,606.75
Returns Received: $175.00
Profit/Loss:  +$75.00 Profit

S&P500 Futures High/Low Call Option Trade Summary

Trade Outcome: ITM
Entry Time / Expiry:
 10:49:25 / 12:00:00 (in PST time)
Investment: $100.00
Returns Offered: 75%
Entry Rate / Expiry Rate: 1,896.875 / 1,897.375
Returns Received: $175.00
Profit/Loss:  +$75.00 Profit

NASDAQ 100 Futures High/Low Call Option Trade Summary

Trade Outcome: ITM
Entry Time / Expiry:
 10:49:37 / 11:00:00 (in PST time)
Investment: $100.00
Returns Offered: 80%
Entry Rate / Expiry Rate: 3,668.125 / 3,668.625
Returns Received: $180.00
Profit/Loss:  +$80.00 Profit

Binary Options Trading Investment Totals 5/23/2014

Total Trades Entered: Three (3) Standard High/Low
High/Low Trade Outcomes:
 Three (3) ITM
Total Investments: $300.00
Total Returns Received: $530.00
Total Daily Profit/Loss: +$230.00 Daily Profit
Daily ROI: +76.67% Daily Net ROI

A 76.67% daily return on investment is certainly nothing to be ashamed of I’d say. Indeed, I felt it best not to press my luck at this point and called a $230 profit for 10 minutes work a fair days wages for a fair days work, so to speak. We regret that we haven’t been able to trade much lately, much less record and publish what little trading we can get away with these days. We are, however, working on at least improving that situation, if not necessarily getting back to a daily publishing schedule.

Well, until next time folks, trade smart and be lucky!

Trading Journal Entry For 5-1-2014

We just happened to get ourselves a little bit of “free” time today to do some trading and put out a trading journal entry. Something which we have unfortunately not been able to do much of at all lately (though we hope to rectify that soon). US indices themselves today ended roughly net flat by the closing bell, but it was a bit of a ride in the getting there. And now we find ourselves once again right back at those record highs which the bulls have tried and failed to break through for four consecutive times now. And since we tested that area again today mid-day and then finished lower it implies that yet another failure and pullback is the most likely outcome. It was also an outcome which we went ahead and “bet” on in our trading today. Let’s first take a quick look at today’s daily chart for the S&P500 index.

daily s&p500 index chart for 5-1-2014

We did all our trading today over the course of just 30 minutes or so. However, we purchased our standard high/low contracts as end-of-day expiries to give the fundamentals more of a chance to assert themselves. We made two indices plays on this. The only other trade we made today was a multi-contract ladder option play on oil using two $50 contracts on each side of the trade (more explanation later). Let’s start by taking a look at our biggest winner for the day, on the good ol’ S&P 500 index.

s&p500 index high/low trade 5-1-2014

S&P500 Index Trade Summary – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry: 17:07 / 20:00
Investment: $250.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1886.42 / 1883.36
Returns Received: $440.00
Profit/Loss:  +$190.00 Profit

The other standard high/low trade which we made was really just an extension of the first trade in some ways. But we felt that if one of the indices were to perform more poorly than the others, it would probably be the NASDAQ based on its recent history. So for that reason we purchased a $100 put option on the NASDAQ for the same end-of-day expiry rather than just tacking on another $100 to the S&P trade. In the end it didn’t really matter, the outcome would have been the same regardless of which way we did it since the declines came across the board. Unfortunately we forgot to screenshot the opening chart for this trade, so here is the daily chart instead.

daily nasdaq index chart for 5-1-2014

S&P500 Index Trade Summary – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry: 17:08 / 20:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 4139.42 / 4126.97
Returns Received: $176.00
Profit/Loss:  +$76.00 Profit

Last up for the day was that ladder option trade. Even though it is two separate $50 contracts (made up of four $25 contracts) it was actually all one trade. You can see where our cursor is in the image below of the opening chart for these ladder options trades, and that points to the area where we were aiming for price to finish up at. The way this strategy works if price finishes anywhere between the two levels then all contracts pay out. If price finishes below a level then half the contracts pay out, and if price finishes above a level then half the contracts also pay out. It is a low risk, low reward strategy in general, but can result in good returns overall. Today was a split finish day, with two of the contracts finishing ITM and two finishing OTM for a modest loss. Let’s take a look.

ladder option oil trades chart 5-1-2014

Ladder Option Oil Trades Summary

Total Contracts Purchased: Four (4) * $25 Contracts
Ladder Trade Outcomes: Two (2) ITM + Two (2) OTM
Total Ladder Investments: $100.00
Total Returns Received: $71.05
Ladder Contracts Profit/Loss: -$28.95 Loss = -28.95% Net ROI

ladder option expired trades 5-1-2014

Daily Investment Totals For 5/1/2014

Total Trades: Two (2) Standard High/Low + Four (4) Ladder Contract
Standard Trade Outcomes:
 Two (2) ITM
Ladder Contract Outcomes: Two (2) ITM + Two (2) OTM
Total Investments: $450.00
Total Returns Received: $687.05
Total Daily Profit/Loss: +$237.05 Daily Profit
Daily ROI: +52.68% Daily Net ROI

standard trades daily investment history 5-1-2014

Pretty good day for how little time and effort we put into it. We’ll certainly take that kind of hourly wage any day. However, our confidence level regarding where markets are headed from here is not exactly at a high point. We lean fairly heavily towards a pullback, but we’ve been right on that score too often already at this point, and are about due for a mistake it would seem. We will probably be adopting a cautious approach to our trading until the markets can provide us with more conclusive information about their future. Until next time people, trade smart and get lucky!

Trading Journal Entry For Friday 4-25-2014

Today’s pullback  makes three. Today’s action has confirmed Tuesday’s peak and marks the third time in as many weeks that the major US indices have made a run at the highs and failed. If I were of a bullish inclination that would certainly worry me. Luckily I am already bearishly inclined so that isn’t a problem. This is actually the first time that we have had the chance to trade and post to our trading journal in over a week due to some other priorities that must be addressed. We did, however, get in a little trading today so we may as well report on it. Although it wasn’t particularly impressive trading. Taking a look at the S&P500 index in the daily chart below we can see that it finished up well below that 1880 level which many technical analysts have been talking about and watching.

daily chart s&p500 index for 4-25-2014

 

For our trading today we kept it fairly light, making just two standard high/low trades, and one ladder option trade consisting of four separate contracts of $25 each. Both of the high/low trades were made on major US indices for an end-of-day expiry based on our fundamental views, rather than the current technical picture at the time of purchase. Unfortunately most of the day’s declines took place before we ever even started trading, so we were lucky to get a 1-and-1 split even rather than a total loss. Let’s take a look shall we?

s&p500 index trade for 4-25-2014

S&P500 Index Trade Summary – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry: 18:09 / 20:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1863.050 / 1862.840
Returns Received: $176.00
Profit/Loss:  +$76.00 Profit

dow index trade for 4-25-2014

DOW Index Trade Summary – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry: 18:09 / 20:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 16352.60 / 16363.42
Returns Received: $0.00
Profit/Loss:  -$100.00 Loss

That amounts to some mild losses for those trades. The ladder option trade went somewhat better but as far as absolute profits earned it still doesn’t amount too much. Not even enough to offset the minimal standard trade losses. The trades below can actually be considered to be one single trade, with four separate contracts. Two are purchased above current price as “Below” contracts, and the other two are purchased above the current price as “Above” contracts. This is part of a simple ladder option strategy we have been working on developing for ourselves. Let’s look at the ladder option chart for oil at the time of our trade.

 

ladder options oil trades chart for 4-25-2014

Ladder Option Oil Trades Summary

Total Contracts Purchased: Four (4) * $25 Contracts
Ladder Trade Outcomes: Two (2) ITM + Two (2) TIE
Total Ladder Investments: $100.00
Total Returns Received: $114.07
Ladder Contracts Profit/Loss: +$14.07 Profit = +14.07% Net ROI

ladder option trade outcomes for 4-25-2014

Daily Investment Totals For 4/25/2014

Total Trades: Two (2) Standard High/Low + Four (4) Ladder Contract
Standard Trade Outcomes:
 One (1) ITM + One (1) OTM
Ladder Contract Outcomes: Two (2) ITM + Two (2) TIE
Total Investments: $300.00
Total Returns Received: $290.07
Total Daily Profit/Loss: -$9.93 Daily Loss
Daily ROI: -3.31% Daily Net ROI

Well, so it turns out that today was actually a very small loss instead of the very small gain we thought it was before adding it all up. Not that we can get too upset over a whopping ten bucks, but profits are always nicer of course. Unfortunately we can’t be sure when we will have more time to ourselves for trading and publishing of our trading journal, but it certainly won’t be daily for the next month or so anyway. We will try as often as we can though. So until next time folks, trade smart and be lucky!

Trading Journal Publication Break

Good afternoon everyone! We hope that these markets haven’t been treating you too harshly lately. We just wanted to post a brief update regarding why publication of our daily trading journal entries has stopped all of a sudden. Unfortunately, we are currently dealing with some severe problems related to our rankings in the various popular search engines. Because of that we have been forced to concentrate all our efforts towards finding out where the problem or problems lie, and then of course we must go about actually fixing those problems. Until we do that we would be writing to an audience of just a small handful. Which it is hard to motivate yourself to do. Nevertheless, we would still do it because those return visitors that track our trading journal deserve as much for their loyalty. However, it is simply a matter of not having the time available for now. Indeed, we have not even been doing any trading which we could report on.

30-day s&p500 index chart on 4-19-2014

We want you to know that we are working very hard on resolving this problem in a timely manner. We hope to be getting back to the business of helping our visitors become better and more profitable binary options traders as soon as possible. No matter what it takes to get there. Unfortunately, that will take some time. We expect that we will be taking a break from trading, and publishing the trading journal for at least the next few weeks. Hopefully our trading journal will be going full-steam ahead again by June at the latest, one way or another. Thank you for your loyalty and support everyone! We have very much appreciated the kind words we have received from so many of you over the last few days since we mostly disappeared from your search results. Thank you all!

We do remain open to your questions though, and will always try to answer all contacts in a timely fashion. So until next time folks, trade smart and be lucky!

Trading Journal Entry For 4-15-2014

It was another day of indecisive and inconclusive market movement for the major US indices today, unfortunately. We were certainly hoping that today would provide more clues as to the future than yesterday did (which is to say basically none at all). But alas, it was not to be. There is a substantial minority of technical analysts that were looking at the 1,840 level as an important ceiling to break, signaling a return to the bull market. And that level was in fact broken today. We, however, are not among that group and we remain in cautious mode until we see further supporting evidence. Because frankly, we’re of the opinion that it is correction time. The market has not had an “official” correction (10%+ decline from peak) in over 2 1/2 years! Nothing goes up forever, especially when you consider that the US, and indeed world economy is still pretty blah overall. Anyway, let’s take a look at today’s daily chart for the S&P500 index, our favorite broad market proxy.

daily s&p500 index chart for 4-15-2014

If you look at the chart above, most of our trading today was done between the 12 – 1 pm period on this time frame (EST). This was not by choice, but rather forced by an appointment we had. Thankfully it actually ended up working out rather well in the end. Really, we should say “luckily” it worked out well in the end. Because it truly was mostly luck in this case. As you can see in the chart above, that 1 pm point marked the lowest level of the day, and that’s also when our put contracts were expiring. Any time after that and we would have had across the board losers, instead of across the board winners. Let’s take a look.

s&p500 index call option trade for 4-15-2014

The first trade of the day (pictured above) kind of goes against much of what we have been talking about over the last week as a counter-trend trade. Not something which we usually recommend. However, for very short-term, purely technical plays it can be an acceptable risk in some cases. We felt that this was one of those cases. We purchased this call option as a very short-term bounce play, with an expiry of only 17 minutes from the time of purchase. It was the right play.

S&P500 Trade #1 Summary – High/Low Call Option

Trade Outcome: ITM
Entry Time / Expiry: 16:12 / 16:30
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1821.850 / 1822.530
Returns Received: $176.00
Profit/Loss:  +$76.00 Profit

s&p500 index put option trade for 4-15-2014

These next two trades were opened even before the first one reached expiry, as we (incorrectly it turned out) believed that the index was turning back around to resume its downtrend of the last few hours. As we know from that daily S&P500 chart in the introduction, that is not at all what happened. But this “fake out” reversal did in fact last just long enough for our trades to finish ITM, and by a fairly “safe” margin too. This goes back to that 1 pm low point we touched on earlier. With an outcome like that it’s impossible to claim pure skill with any kind of straight face. Nobody is that good.

S&P500 Trade #2 Summary – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry: 16:22 / 17:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1821.150 / 1817.830
Returns Received: $176.00
Profit/Loss:  +$76.00 Profit

nasdaq index put option trade for 4-15-2014

Last up for the standard high/low trades for the day was basically just a “doubling down” on the other S&P500 index trade. In fact this contract on the NASDAQ index was purchased just seconds later, also at 16:22 system time. A play like this is only slightly different from just buying a $200 contract on the S&P. But it can also sometimes be an important “slight” difference. In this case it wouldn’t have mattered either way though, with the returns being exactly the same regardless.

NASDAQ Index Trade Summary – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry: 16:22 / 17:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 3964.760 / 3948.970
Returns Received: $176.00
Profit/Loss:  +$76.00 Profit

ladder options oil trades chart 4-15-2014

Last up today we had a series of ladder option contracts purchased on oil. Four contracts to be precise. All on oil, all for the same expiry, and all purchased at the same time. You can actually consider all four contracts as making up one single trade. It was done as part of a strategy which we are working on developing for ladder options trading. It is actually a pretty simple strategy that other ladder option fans are probably independently using. But it has been working very well for us for the last couple weeks. Hopefully we’ll get a write-up done and published on this strategy soon, probably sometime this month if all goes well.

ladder option expired trades history 4-15-2014

Ladder Option Oil Trades Summary

Total Contracts Purchased: Four (4) * $25 Contracts
Ladder Trade Outcomes: Four (4) ITM
Total Ladder Investments: $100.00
Total Returns Received: $147.37
Ladder Contracts Profit/Loss: +$47.37 Profit = +47.37% Net ROI

daily standard trades investment history 4-15-2014

Daily Investment Totals For 4/15/2014

Total Trades Entered: Three (3) High/Low + Four (4) Ladder Contracts
High/Low Trade Outcomes:
 Three (3) ITM
Ladder Option Outcomes: Four (4) ITM
Total Investments: $400.00
Total Returns Received: $675.37
Total Daily Profit/Loss: +$275.37 Daily Profit
Daily ROI: +68.84% Daily Net ROI

platinum trader broker for us binary options traders

As you can see today’s trading resulted in a “perfect game” of seven ITM finishes, and not a one OTM finish. Can’t ask for much more than that. There was certainly a fair amount of luck in today’s outcome, but luck goes both ways in the long-run so you should be happy with the good when it comes. Since we took yesterday off from trading that makes today our opening for the week, so that’s a good start. But it will also be a very short week with US markets closed on Friday. See you all next time, and good luck out there!