Binary Options Trading For 2-26-2014

Well, we saw something today that you definitely don’t see very often. An almost perfectly flat day for the S&P500 index. Flat enough that it doesn’t even register on a percentage basis rounded to up to four decimal places. The index recorded a gain of +0.04 points, or 0.00002% for the day. But it was another fairly wild ride in the getting there, as you can see. And while the indices may have finished flat for the day, our Traderush account balance sure didn’t. These were near perfect short-term trading conditions from our point of view, and we took full advantage of that while we could. We didn’t start trading until the last half of the day, but that worked out perfectly as we missed most of that long flat period in there, and then got in just in time to benefit from the steep afternoon declines.

S&P500 daily index chart for 2-26-2014

We logged on to our trading account at about 1 pm EST, and then spent the next 30-45 minutes on chart technical analysis using both the Traderush charts, and the ThinkOrSwim charting software. When we hit the USD/CHF currency pair chart, we simply couldn’t open our trading window and click the purchasing buttons fast enough. The setup just looked that good. There was no hesitation entering this trade, and the outcome was never really in doubt. A rare occurrence. Unfortunately, in our haste to get the trade executed we didn’t take a picture of the TOS chart and you can’t see anything in the small time window below. However, the chart we linked to for the USD/CHF currency pair shows everything quite clearly. The pair was all set for a rip-roaring run up, and it didn’t fail to deliver on that promise.

opening of usd/chf currency pair call option trade 2-26-2014

Summary For USD/CHF Currency Pair – High/Low Call Option

Trade Outcome: ITM
Entry Time / Expiry:
 17:18 / 17:30
Investment: $100
Returns Offered: 85%
Entry Rate / Expiry Rate: 0.89220 / 0.89224
Returns Received: $185.00
Profit/Loss: $85.00 Profit

The next trade of the day was made after returning to our charts, and going back to the S&P500 for a look at our earlier technical work on the daily chart. At this point there was fairly strong indications of an impending decline in prices, but of course exact timing of these things is next to impossible. Nevertheless we took our shot as the odds seemed favorable, and we like favorable odds. It ended up being a much closer outcome than we would have preferred, with price fluctuating in a tight range right around our entry price. Luckily, in the end it finished up on the “right” side of things, for another ITM trade.

near closing of our s&p500 futures trade for 2-26-2014

Summary For S&P Futures Trade – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 17:36 / 18:00
Investment: $100
Returns Offered: 73%
Entry Rate / Expiry Rate: 1849.625 / 1848.625
Returns Received: $173.00
Profit/Loss: $73.00 Profit

After those trades we took a break for an hour or so because markets went flat and we had other things to do. We kept an eye on things the whole time though and when those afternoon declines began, we were very quick to hop back on for the ride. The DOW Index happened to be the one we were watching on our TOS charts, so to save time that’s where we went straight to upon opening up our trading account. And below you can see in our TOS chart exactly what we were seeing, and why we got into this trade.

dow index thinkorswim chart with technical analysis for 2-26-2014 trade

We had been waiting for it or the S&P500 to break trend lines, and here it finally happened, and happened decisively too. The funny thing is we almost lost this trade anyway, because we didn’t know we had been logged out of our account and our trade wasn’t being executed. We didn’t get in at near the level we should have gotten in at. Luckily, declines were so steep for a while after this that it didn’t matter. In the image below you can see where the trade stood just seconds before expiry. We also superimposed the TOS chart so that you could better see exactly where we went from the opening shot. This was just a classic trend-line break setup. Although they aren’t usually this clean.

closingof dow index trade for 2-26-2014

Summary For DOW Index Trade – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 19:08 / 19:30
Investment: $100
Returns Offered: 70%
Entry Rate / Expiry Rate: 16199.48 / 16164.62
Returns Received: $170.00
Profit/Loss: $70.00 Profit

Lastly, we went back to our first love of the day, the USD/CHF currency pair. But this time the short-term technical picture was very different indeed. By this time the short-term rapid advances seen earlier were long-gone, and the larger trend of declines had resumed. Here again we have a nice picture of our ThinkOrSwim chart with trend lines drawn in. We entered our trade at the point where the pair broke under the bottom trend line, before popping back up just as fast. It never dropped back below trend before expiry of the trade. However, because the trend was both a declining, and a narrowing one, it was good enough for the ITM finish in the end.

opening of afternoon usd/chf put option trade for 2-26-2014

Summary For USD/CHF Currency Pair – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 19:34 / 20:00
Investment: $100
Returns Offered: 85%
Entry Rate / Expiry Rate: 0.89131 / 0.89104
Returns Received: $185.00
Profit/Loss: $85.00 Profit

That’s it! We didn’t end up making any trades in the last hour of US trading, and we’re glad we didn’t because they didn’t act as expected towards the end there. We finished out the day with a flawless win record of 4 for 4 so nothing to complain about there. It was a needed change from the last two days of boring markets and minor losses. Hopefully tomorrow will have some action to it as well. All four trades today were standard high/low options, and all were made for the same $100 investment. No 60-second or Custom options were traded.

Daily Investments History Totals For 2-26-2014

Trades Made: Four (4) Standard High/Low
Trade Outcomes:
 Four (4) ITM
Total Investments: $400.00
Total Returns Received: $713.00
Total Daily Profit/Loss: +$313.00 Total Daily Profit
Daily ROI: +78.25% Daily ROI – Very Nice!

daily traderush investments history for 2-26-2014

Today’s decent gains were able to easily erase the combined losses of the last two days, and bring us up into profitability for the week so far. As we mentioned yesterday though, we have no intention of trading any more “bad” markets this week, and if that means sitting out the day entirely, then that’s what we’ll do. We have been going against our own good advice to often lately, and trading without conviction and in unfavorable markets just for the sake of trading. Mostly so that we have something for our visitors each day. But you should do as we say, not as we do. Knowing when to walk away, and when to push your luck is critical to your overall profitability. So until next time folks, trade smart and be lucky!

Monday’s Trading | Tuesday’s Trading

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BinaryBoss

Jason--AKA "BinaryBoss"--is a graduate of WSU with a degree in economics with a financial markets focus. In 2009 Jason left his job with Microsoft in his home state of Washington to pursue a life of self-employment.

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