Binary Options Trading Journal For 3-6-2014

It was a day of elevated volatility, but little overall movement for the major US indices. It was actually very similar to trading conditions yesterday. And while volatile and trending is our absolute favorite condition, relatively flat but volatile isn’t all that far behind. These are very “tradeable” market conditions for intra-day traders. In the snapshot below we chose to show just a tad more than the usual one-day chart, due to the rather large “gap-up” opening which we had today. Any gains which indices did manage to hang onto by closing bell came from this overnight gap. Luckily for us, there was lots of back and forth swings throughout the day on which to trade.

daily s&p500 index chart for thursday 3-6-2014


Whenever conditions are like this you will find us largely sticking to index plays. They are the markets which we know best, and you should always stick to what you know best. When such a thing is practical at least. Well, it was practical to do so today, and so we did, with 3 of our 4 trades for the day being plays on the S&P500 index. And it ended up being a relatively “flat” day for our account balance, as well as the overall markets. And we even had to take a risk which we would normally not recommend others take, or normally take ourselves, just to get back to flat. But enough generalities, let’s get to some trade specifics shall we?

chart for first s&p500 index trade 3-6-2014

The image directly above is showing the on-site detail chart for our first trade of the day, an S&P500 index trade, shortly before expiry. And actually even after this was taken price jumped back up above our entry-level, but only very briefly, luckily for us. You can basically see what it was we were trading on even with just the chart above. Throughout the day price had been fluctuating up and down within a well-defined channel, and here it appeared to be “rolling over” for its next trip lower. It was a closer trade than we had anticipated, or would have preferred, but in the end it all came out alright with an ITM finish.

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

Trade Outcome: ITM
Entry Time / Expiry:
 17:16 / 17:30
Investment: $100
Returns Offered: 70%
Entry Rate / Expiry Rate: 1881.435 / 1880.880
Returns Received: $170.00
Profit/Loss: $70.00 Profit

just prior to closing of our losing s&p500 index trade for 3-6-2014

You may be able to correctly guess the outcome of this trade based solely on the screenshot pictured above. Yep, it was a big fat loser. There was nothing wrong with the trade itself, no mistakes to learn from here, but rather simply a good shot that broke wrong. It happens. But of course, it also happens the other way around sometimes, turning trades that should have been losers into winners. In the long-run, luck will almost always balance out, leaving skill (or lack thereof) to make the difference. This trade was a bumpy ride, but in the end it finished just barely OTM.

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

Trade Outcome: OTM
Entry Time / Expiry:
 17:36 / 18:00
Investment: $100
Returns Offered: 70%
OTM Refund Rate: 10%
Entry Rate / Expiry Rate: 1880.900 / 1881.130
Returns Received: $10.00
Profit/Loss: -$90.00 Loss

USD/CAD currency pair binary option trade for 3-6-2014

After getting burned by our last S&P trade, we switched things up a bit when we came across a pretty nice looking chart (on our TOS charting, not the one above) for the USD/CAD currency pair. Unfortunately, a nice looking chart did not translate into a nice outcome. This trade hurt, and was a mistake in hindsight. If we had taken a screenshot of our analysis chart then we would point out where we went wrong in detail, but alas we did not. You’ll just have to take our word for it, we screwed up here.

USD/CAD Trade Summary – High/Low Put Option

Trade Outcome: OTM
Entry Time / Expiry:
 18:34 / 19:00
Investment: $100
Returns Offered: 75%
OTM Refund Rate: 10%
Entry Rate / Expiry Rate: 1.09875 / 1.09885
Returns Received: $10.00
Profit/Loss: -$90.00 Loss

Now at this point in the day we are finding ourselves down $110, which is a lot on total investments of only $300. More than 33% loss on investment so far. Our worst start in a few weeks. Normally we would not let this change our trading behavior much, and certainly not to the tune of more than doubling our standard investment amount of $100 per trade. Nor would we recommend that our readers try to “win back losses” simply by investing more and more the more you lose. This is not a wise strategy. However, these were special circumstances.

our last and largest S&P500 trade for 3-6-2014

As you can probably see in both the charts above, our “special circumstances” were a near perfect technical setup for a rebound play. An irresistible trade to be sure. The only question was, how much? Price was moving so fast here that we knew we would only have time to buy in to one contract at these low levels. This was no time for timidity. With these facts in mind, we pulled the trigger for $250, for a potential payout of $425 on our investment. This $175 profit would bring us back into profitability for the day, with a small $65 gain. Certainly much better than a $110 loss.

S&P500 Trade #3 Summary – High/Low Call Option

Trade Outcome: ITM
Entry Time / Expiry:
 19:02 / 19:30
Investment: $250
Returns Offered: 70%
Entry Rate / Expiry Rate: 1876.100 / 1878.490
Returns Received: $425.00
Profit/Loss: $175.00 Profit

daily investment history for 3-6-2014 binary options trading

With all four trade summaries out-of-the-way that brings us to today’s investment history totals and summaries. We made a total of four trades for the day, all of which were standard high/low binary option contracts. Of those four trades, two finished ITM, and two finished OTM. But because one of our winners was for a much larger amount than the other trades, we still ended up in the black for the day.

Daily Investments History Totals For 3-6-2014

Trades Made: Four (4) Standard High/Low
Trade Outcomes:
 Two (2) ITM + Two (2) OTM
Total Investments: $550.00
Total Returns Received: $615.00
Total Daily Profit/Loss: +$65.00 Total Daily Profit
Daily ROI: +11.8% Daily ROI

So that makes 3 days of trading this week with 3 days of profitability (we skipped trading Tuesday). It has been a pretty decent, though not spectacular week for our account balance, so we’ll see how Friday goes. Until the next time, trade smart and be lucky folks!

Leave a Reply

Your email address will not be published. Required fields are marked *