Binary Options Trading For Tuesday 4-8-2014

US indices mostly managed to at least halt their recent slides today, and even post some modest gains. But the signs were far from bullish overall, with tech continuing its slide, and other important sectors remaining sluggish and technically weak even while gaining a little ground. We certainly won’t be opening any “long-term” call positions in the near future (“long-term” in this sense merely being greater than an hour expiry window). It was also another good day for us, with every single position we entered finishing ITM today. That doesn’t happen often. Our total investments were rather modest overall though as we were not quite as confident in today’s markets as we have been the last two trading days. But in the end they treated us quite well indeed. As usual, let’s start with a look at a daily chart for the S&P500 index for today’s trading.

s&p500 index daily chart for 4-8-2014

Luckily we got all of our trading for the day done relatively early, and we missed out on all that terrible sideways action of the afternoon. Which is exactly why we never went back to trading the rest of the day. Since we had already done so well and markets were not looking very cooperative, we thought it best to just quit while we were ahead, as the old saying goes. We made a few different varieties of trades today, but all of them were made on our GOptions account, unlike the last few days. We’ll start off with the single ladder option trade we made today, on the EUR/USD pair.

goptions account ladder option trade 4-8-2014

This picture above was taken immediately following the purchase of the option. We have placed the thumb pointer right at the contract we purchased, so that you can see what we were doing as we were doing it there. This was a purchase of two contracts though, so a $50 investment. But as you can see price was already a bit below the strike price so it was a fairly high-probability trade. Well worth the 55% return offered in this case. And sure enough, this trade finished comfortably within ITM range.

ladder option trade expired positions 4-8-2014

EUR/USD Ladder Option Trade Summary

Trade Outcome: ITM
Ladder Trade Type:
 Below @ 1.38020
Contract Start / Expiry: 16:00 / 17:00
Strike Rate / Expiry Rate: 1.38020 / 1.37960
Investment Amount: $50.00
Returns Received: $83.50
Trade Profit/Loss: + $33.50 = 67.0% Actual Return

Aside from the ladder option trade above, we also made one pair options trade, as well as two standard high/low trades. We took pictures for the opening charts for each trade, so we’ll show those along with each one’s summary for better context. Starting with the pair option trade it was an Apple v. Amazon battle to the death. Errr wait, there’s no death, it just feels that way when you lose. Luckily for us then that we did not lose. This was a basic reversion to the mean play, a simple and common pair options strategy that can work quite well (and which we will eventually get around to writing about…).

apple vs. amazon pair options trade for 4-8-2014

Apple vs. Amazon Pair Option Trade Summary

Trade Outcome: ITM
Entry Time / Expiry:
 16:49 / 17:00
Investment: $100.00
Returns Offered: 74%
Entry Rate / Expiry Rate: 1.59815 / 1.59855
Returns Received: $174.00
Profit/Loss: +$74.00 Profit

Next up was actually our first trade opened today, on the trusty (okay not so trusty) S&P500 index. And as with most of our other index plays of late, this too was purchased as a put option, going with the prevailing trend. However, things did not really develop how we were hoping that they would, and we are lucky that this position even finished ITM at expiry. It was from this point on that markets went pretty much flat, and stayed that way for the rest of the day.

s&p500 index standard trade chart 4-8-2014

S&P500 Index High/Low Put Option Trade Summary

Trade Outcome: ITM
Entry Time / Expiry:
 16:44 / 17:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1850.400 / 1849.270
Returns Received: $176.00
Profit/Loss: +$76.00 Profit

Last up today would be another standard high/low option, but purchased on oil this time. This trade was made just a few minutes after the S&P500 trade, when while going through some charts the oil chart just jumped out at us. Price had just finished skyrocketing upward more than a full dollar in just a very short period of time, and had started to settle down a bit. We felt that it was highly likely that in the short-term at least, price would correct somewhat after such rapid gains. That didn’t really happen within the time frame which we were working with on our contract, but it did still settle down enough for an ITM finish nevertheless.

oil trade standard put option chart 4-8-2014

Oil Contract High/Low Put Option Trade Summary

Trade Outcome: ITM
Entry Time / Expiry:
 16:49 / 17:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 102.152 / 102.075
Returns Received: $176.00
Profit/Loss: +$76.00 Profit

daily standard investments history 4-8-2014

Daily Investment Totals For 4/08/2014

Total Trades Entered: Three (3) High/Low + One (1) Ladder Option
High/Low Trade Outcomes:
 Three (3) ITM
Ladder Option Outcomes: One (1) ITM
Total Investments: $350.00
Total Returns Received: $609.50
Total Daily Profit/Loss: +$259.50 Daily Profit
Daily ROI: +74.14% Daily Net ROI

Now that is a yummy looking daily ROI number right there. Considering that it is the average of four trades we couldn’t ask for much better. And this also now makes for three days in a row or returns like this so it is shaping up to be a good week so far, and hopefully a good month! Last month wasn’t bad, but it wasn’t much to cheer about either, so a great month for April would be nice. We shall see, we shall see. Until next time folks, trade smart and get lucky!

Monday, 7th Trades

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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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