Today was a decidedly lazy, yet still profitable trading day. One which we can live with quite easily. We only spent about 15 minutes early in the day doing some quick-and-dirty technical analysis to complement our overall market thesis (bearish in the short-run at least). The technical indicators suggested that we might see some additional drift up through the trading day, however. Not wanting to trade call options in what we see as a downward-trending market, we simply held off on doing any trading during the first half of the day.
The last half of the day, on the other hand was both downward-trending and more volatile than earlier. We feel that volatility and binary options trading are practically a match made in heaven. We didn’t get a chance to log back into our trading account until just before the last hour but our timing really couldn’t have been any better. At this point the DOW chart looked very ripe to continue a decline for at least a bit before coming back at all. We entered the trade right away at that point, buying a Put option on the DOW at 19:59 (GMT) and 15449.98 points, for $96.10 and with an expiry of 20:30.
You can easily see in the chart above where exactly the DOW “rolled over.” And of course our trade entry is represented by the little circle with the down arrow in it. Showing both the type of trade (put) and the entry-level. However just after entering this trade the DOW made a try at reversal and jumped up a bit (see image below). But we still felt pretty good about our analysis so we just used this as an opportunity to “double down” on our play. It wasn’t a literal doubling down as this contract was only purchased for $50 but it brought our total position to $146.10 with 70% returns offered on the trade.
And luckily it all worked out in the end for both these trades. Immediately after entering the 2nd trade declines resumed, and then accelerated. You can see this in the first chart we posted where it drops off sharply before rebounding just as sharply in the last 30 minutes. Our trade were profitably expired by then though. These were the only two trades we made today so that brings us to our Traderush investment history for today.
As we said in the opening of this post it was a lazy day with a decent outcome. We’ll take it. For the day we made two standard high/low binary options trades for a total of $146.10. Both trades offered returns of 70% and both trades were successful so our total return was $248.37, a profit of $102.27 on our investment. Not bad for 30 minutes “work” really. Two days into the week with two days of winning trades is a pretty decent start, but we’ll see how the rest of the week goes. Good luck to everyone out there!