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&P500 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!