Trading Journal Entry For 3-17-2014

Welcome to our first “official” day of trading on our new main binary options trading account at GOptions. We have traded with them before, very recently in fact, when we opened an account there to review them for this site. But then it was business, and now it is where our personal account resides. This move was NOT a result of any dissatisfaction with Traderush (read review). On the contrary we would surely still be there if we hadn’t been forced to move. We are based out of the US, and Traderush can no longer accept US clients, unfortunately. Luckily we had just recently discovered GOptions (read review), and so the question of where to go from Traderush was pretty much a no brainer for us. You can read more about the move here though if you want. Let’s get to the day’s trading.

daily chart s&p500 index for 3-17-2014

US indices had a banner day today, with the S&P500 index gaining 17.6 points, or roughly +1% for the day. Those gains ended up erasing the majority of last week’s losses, and put us right back into caution mode going forward. How markets behave going into tomorrow is anyone’s guess as far as we’re concerned, and we’ll be stocking to short-run trades only until that changes. However, what with it being the first day of public trading on the new broker platform, we weren’t exactly what we’d call overly “cautious” today. But no matter, it didn’t hurt too bad and we had some fun messing around.

first s&p500 index trade for 3-17-2014

We fairly quickly discovered that with the GOptions platform we didn’t have to use our TOS charting software nearly as often as usual. Because you can so easily switch between chart time frames you can get a much better overall picture of things than with most binary option platforms. The only time we found ourselves referring to our off-site charts is to use various technical analysis tools for any longer-term trades (by longer-term we simply mean 1+ hours is all). As you can see above, our first trade of the day was on our old favorite, the S&P500 index. It had gone nearly straight up earlier in the day, but had been bleeding off some ever since then. We went with the trend there and purchased a high/low put option contract for $100.

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

Trade Outcome: ITM
Entry Time / Expiry:
 17:05 / 17:30
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1859.340 / 1857.210
Returns Received: $176.00
Profit/Loss: $76.00 Profit

We made a total of eight trades today, all high/low contracts, and with one pair options contract in there. And some of those trades did not have the most robust of analyses supporting them (or really any analysis at all for that matter). We just wanted to trade a little bit of everything and mess around a bit for our first day there. In the end we went 4 and 4 for the day, which amounts to a mild loss. For these reasons we won’t get into the details of each trade like we usually do, and instead we’ll just provide the images and trade summaries for each trade, as well as the day’s totals at the end.

dual s&p500 index losing trades for 3-17-2014

The next two trade were also both S&P500 index plays. Unfortunately, these ones finished OTM by a wide margin after markets spiked up sharply prior to expiry of the trades. The image above shows our “Open Positions” tab, with little mini-charts that show where price has gone since our trade entry. Another cool little feature which we are liking.

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

Trade Outcome: OTM
Entry Time / Expiry:
 17:59 / 18:30
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1858.480 / 1860.750
Returns Received: $0.00
Profit/Loss: -$100.00 Total Loss

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

Trade Outcome: OTM
Entry Time / Expiry:
 18:08 / 18:30
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1859.090 / 1860.750
Returns Received: $0.00
Profit/Loss: -$100.00 Total Loss

After those two consecutive, painful losses it was time for a change of underlying assets. We’ve always been fans of pair options trading (and are sad that Stockpair is no longer serving the US market) so we headed on over to check out GOptions pair options selection. There were quite a few choice up for trading today, but the chart for the CITI/AIG pair looked especially good to us. And for most of the trade things were looking good. Sadly, just near the end there was a rebound and price was able to just barely creep up and over our entry rate, for another loss.

pair options trading for 3-17-2014

CITI/AIG Pairs Trade – High/Low Put Option

Trade Outcome: OTM
Entry Time / Expiry:
 18:33 / 19:00
Investment: $100.00
Returns Offered: 74%
Entry Rate / Expiry Rate: 0.97085 / 0.97246
Returns Received: $0.00
Profit/Loss: -$100.00 Total Loss

The rest of these last four trades are going to be presented in order of expiry time, rather than entry time. With that being the case our next trade is going to be on the AUD/USD currency pair, which is one of our favorite assets to trade. This trade was a wild ride and a closer call than we would have liked, but managed to finish ITM in the end.

first aud/usd currency pair trade for 3-17-2014

AUD/USD Currency Pair Trade – High/Low Call Option

Trade Outcome: ITM
Entry Time / Expiry:
 18:40 / 18:45
Investment: $100.00
Returns Offered: 80%
Entry Rate / Expiry Rate: 0.90886 / 0.90895
Returns Received: $180.00
Profit/Loss: +$80.00 Profit

Next up is a trade which we somehow didn’t even end up with even one screenshot for. Which is unfortunate because this was actually a pretty good trade, and made for our third ITM finish for the day so far.

S&P500 Index Trade #4 – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 19:15 / 20:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1860.710 / 1858.440
Returns Received: $176.00
Profit/Loss: +$76.00 Profit

vix volatility index and aud/usd pair trades for 3-17-2014

Finally, our last two trades of the day were made together, with one of them being a mistake. Oops. That AUD/USD trade was supposed to be a put option on the S&P500 index (which I did end up purchasing a few minutes later, and it did finish ITM — see s&p500 trade #4). Somehow I wasn’t paying enough attention and didn’t switch the chart over before going through the purchase. And unfortunately, unlike our last mistake, this one did end up costing us $100, as the mistaken AUD/USD trade finished OTM. The VIX volatility index play, on the other hand went very well, and was basically never even in any danger of finishing OTM. We love trading the VIX in volatile market conditions. It can be a great money-maker.

AUD/USD Trade #2 – High/Low Call Option

Trade Outcome: OTM
Entry Time / Expiry:
 19:11 / 19:30
Investment: $100.00
Returns Offered: 80%
Entry Rate / Expiry Rate: 0.90880 / 0.90857
Returns Received: $0.00
Profit/Loss: -$100.00 Total Loss

VIX Volatility Index – High/Low Call Option

Trade Outcome: ITM
Entry Time / Expiry:
 18:36 / 20:00
Investment: $100.00
Returns Offered: 70%
Entry Rate / Expiry Rate: 15.570 / 15.680
Returns Received: $170.00
Profit/Loss: +$70.00 Profit

daily investment history totals for 3-17-2014

Whew! That finally brings us to the day’s investment history summaries and totals for Monday, March the 17th. It was a mixed day of trading with 4 ITM finishes and 4 OTM finishes. Of course, an even split means overall losses in this game. But not too bad of losses, and tomorrow we plan to come back and start things off for real, no screwing around just for fun. One day of that is okay. Much more than that would potentially start to get painful.

Daily Investments History Totals For 3-17-2014

Trades Entered: Eight (8) Standard High/Low
Trade Outcomes:
 Four (4) ITM + Four (4) OTM
Total Investments: $800.00
Total Returns Received: $702.00
Total Daily Profit/Loss: -$98.00 Total Daily Loss
Daily ROI: -12.25% Daily ROI

So, a daily loss of about $100, or -12.25% on investment. Certainly not one of our better days, but nor is it any kind of crippling loss. What the results of today will do is cause us to be more cautious in our trading at least for the next few days. Being overly timid as a rule will never get you anywhere, but sometimes it is the right move. Especially since markets, broadly speaking, did not act as we would have liked today, confusing the technical picture. So until next time folks, trade smart and be lucky!

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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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