Trading Journal Entry For 4-11-2014

It was another day of the bears ruling supreme over all *evil laugh*. We’ve now shed almost 80 points from the S&P500 index’s record highs of just a couple short weeks ago, with no signs that things will be reversing in the immediate future. This has of course been good news for us and our account balance, as we turned bearish just about two weeks ago and have been profiting from the slide ever since. And the confirming moves of the last two days really solidifies support for our major trend-reversal investment thesis of the last few weeks. We will probably be purchasing some long-term put option contracts on US indices Monday, for end of the month expiry, but we shall see. As for US markets today, the S&P500 had lost about 17 points by the closing bell, or about 1%.

daily chart s&p500 index for 4-11-2014

Binary Options Trading For 4/11/2014

As for our own trading today we took things easy and played it pretty safe, opening only one new trade for the day, a standard high/low put option on the good ol’ S&P500. The main reason why we only had one new trade today — aside from just a general caution to preserve our profits from the rest of the week — was because we had a long-term trade for $250 which was expiring today. We figured that between the outcome of that trade and the one new trade we opened, that would be enough for one day, whichever way they went. Let’s start with the “short-term” trade that was purchased today.

opening chart for s&p500 short term trade 4-11-2014

The S&P500 chart in the image above was taken immediately following the purchase of the contract, and shows exactly how things stood at the time, as well as the parameters of the trade. As you might have noticed we bought this with an end-of-day expiry (20:00 broker system time) rather than the usual 30-minute to 1-hour expiry window. And that is because this was a pure fundamentals play. No technical analysis or chart reading need come into play here. Just a bet on broadly declining US equities. And in a case such as that we want to give the trade enough time that fundamentals can actually come through the more random noise (ups and downs) of the markets. As you might have guessed, this trade finished quite safely ITM by today’s closing bell.

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S&P500 Index Trade Summary – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry: 18:30 / 20:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1819.010 / 1816.310
Returns Received: $176.00
Profit/Loss:  +$76.00 Profit

weekly s&p500 chart for long-term trade 4-11-2014

The chart for our long-term trade is best just shown as a 5-day chart of the S&P, which is exactly what we have above us here. The “long-term” contract was purchased on Monday the 7th for a Friday the 11th expiry, so this is a perfect chart for the trade. As you can see things weren’t exactly looking too by the closing bell on Wednesday. However, Wednesday is also the day we warned our readers not to be fooled by the faux rally of the previous two days, and to instead remain cautious with a bearish inclination. And that has treated us very well over the last few days indeed.

long-term expired trades for 4-11-2014

S&P500 Index “Long-Term” Trade – High/Low Put Option

Trade Outcome: ITM
Entry / Expiry: Monday @ 16:25 / Friday @ 17:10
Investment: $250.00
Returns Offered: 74%
Entry Rate / Expiry Rate: 1840.7314 / 1816.3750
Returns Received: $435.00
Profit/Loss:  +$185.00 Profit

standard trades daily investments history 4-11-2014

Daily Investment Totals For 4/11/2014

Total Trades: One (1) Standard High/Low + One (1) “Long-Term”
Trade Outcomes:
 Two (2) ITM
Total Investments: $350.00
Total Returns Received: $611.00
Total Daily Profit/Loss: +$261.00 Daily Profit
Daily ROI: +74.57% Daily Net ROI

We’ll gladly take a $260 profit for little risk or work. Any day. This has been one heck of a week, both for overall markets and for our own trading. I do believe that there is a good chance that when we add things up for the weekly trading roundup numbers we will find this was the best week we’ve had so far this year, on both a percentage and absolute basis. Hopefully we will get that done and published tomorrow. So until then people, trade smart and be lucky!

Monday 7th Entry | Tuesday 8th Entry | Wednesday 9th Entry | Thursday 10th Entry

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