Saturday means that it is time for our weekly trading roundup. This is where we summarize and total up all of our various binary options trades made for the week of April the 7th through April the 11th. And while we haven’t even yet done that for ourselves yet we are thinking that when we do add it all up we’re going to find that this was our best week of the year so far. Or darn close to it if not the best. US markets themselves, on the other hand, didn’t quite enjoy the gains we did, to put it mildly. In actuality it was quite the opposite, being the worst week of the year so far for US indices. But falling markets are always much more profitable than rising ones if you have/had a bearish outlook while others were still bullish. And we called this trend-reversal almost exactly — in both timing and magnitude — so large profits almost couldn’t help but follow.
Looking at the S&P’s weekly chart we can see that the declines so far have come in two distinct waves. The first leg down started on Friday of last week, and we rode it all the way down through Tuesday morning, profiting all along the way. We then went into cautious mode through Tuesday afternoon and all of Wednesday. Making only a few trades each day and getting in and out of the markets as quickly as possible. After the closing bell on Wednesday we warned our readers not to fall for the faux rally of the last two days because despite those gains, markets remained in corrective mode from both a technical and a fundamental view. Hopefully you were of the same opinion.
Monday, April 7th Trading Summary
We made trades from two different brokerage accounts on Monday. A few in our old Traderush account, which has to be closed by the end of the month when they will officially be exiting the US market and dropping/moving all US accounts to their new brand launched especially for the US and other English-speaking markets, Boss Capital. And that is where we made our other trades for the day. We have just recently opened an account with Boss so that we could review their platform and services for the site, but we enjoyed it so much that we have just left the account open for now. Anyway, all our trades today were made using the standard high/low contract variety, with three being made on the Traderush platform, and five made on the Boss Capital platform. As you can see in the image above, the Traderush contracts turned out quite well indeed, so how about those Boss Capital trades?
Not quite as good as the Traderush contracts. But that one $250 investment being an ITM finish really helped offset the two $100 investment OTM finishes. As you can see every single one of these trades, on both broker accounts, was made on an US index. That’s because these were all fundamentals plays on broadly declining US equities. Pure macroeconomic plays, our favorite kind when conditions are right for them (our educational background is in macroeconomics, and we are a total econ nerds).
Total Trades Entered: Eight (8) Standard High/Low
Trade Outcomes: Six (6) ITM + Two (2) OTM
Total Investments: $950.00
Total Returns Received: $1,303.50
Total Profit/Loss: + $353.50
Total Daily ROI: + 37.21% Daily ROI
Monday – 7th Journal Entry
Tuesday, April 8th Trades Summary
Tuesday it was back to our new main trading account over at GOptions. As we mentioned in the opening of this post we moved into cautious mode for Tuesday and Wednesday’s trading. It was these days that were going to be basically be determining market action for the coming days, and even weeks. US indices would either confirm their trend-reversal by failing to rally and falling to new lows (what ended up happening) or they would make a run at new highs. We obviously felt that failure was by far the most likely outcome. But you can’t be certain, of course, and price action is a more reliable indicator than your own analysis, no matter how smart you are or think you are. So with that in mind it was a watch and wait period for us, with only minimal active trading. For Tuesday we made one ladder options trade for 2 contracts, and three standard high/low trades for the usual $100 investment.
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
Tuesday – 4/8 Journal Entry
Wednesday, April 9th Trades Summary
Wednesday was another day of “caution” in our trading, with only $400 invested in total. That $400 was split between three ladder option trades totaling 4 * $25 contracts, and three standard high/low contracts for the other $300. Of these trades just one of the standard high/low contracts finished ITM, so not bad overall. But not as good as one might imagine either. I do believe that this was our worst day this week as the only one with under $100 in daily profits.
Total Trades Entered: Three (3) High/Low + Three (3) Ladder Option
High/Low Trade Outcomes: Two (2) ITM + One (1) OTM
Ladder Option Outcomes: Three (3) ITM
Total Investments: $400.00
Total Returns Received: $483.13
Total Daily Profit/Loss: +$83.13 Daily Profit
Daily ROI: +20.78% Daily Net ROI
Wednesday – 4/9 Journal Entry
Thursday, April 10th Trades Summary
Thursday it was right back to our aggressively bearish trading. We made quite a few trades this day so it isn’t practical to talk about them here, but you can get all the details from the daily journal entry for that day if you so desire (which can be found at the end of the day’s summary). Here you are just going to get the investment history totals, and the daily trades summary to save room. We do want to mention real quick though that the 5 ladder options trades which you see in the image above are really just two separate trades made as part of a larger ladder options strategy we have been working on developing (and which is coming along nicely, showing great promise. We hope to work out the remaining kinks and get it published sometime this month. So stay tuned for that if you love ladder options as much as we do!).
Total Trades Entered: Five (5) High/Low + Five (5) Ladder Option
High/Low Trade Outcomes: Four (4) ITM + One (1) OTM
Ladder Option Outcomes: Three (3) ITM + Two (2) OTM
Total Investments: $625.00
Total Returns Received: $812.15
Total Daily Profit/Loss: +$187.15 Daily Profit
Daily ROI: +29.94% Daily Net ROI
Thursday – 4/10 Journal Entry
Friday, April 11th Trades Summary
Now for Friday we kind of went back into cautious mode. We did so not because markets had become uncooperative, because they hadn’t. Our fellow bears were still running the game. However, we wanted to somewhat “play it safe” and simply preserve the great returns which we had already achieved since last Friday. In addition to that, we also had a “long-term” trade made for $250 that was purchased on Monday, for a midday Friday expiry. So we figured that between the outcome of that trade, and the additional single high/low trade we opened that would be a plenty large enough impact on the account balance for one day, whatever the trade outcome.
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
Friday – 4/11 Journal Entry
Weekly Binary Options Trading (April 7th – 11th)
Total Standard High/Low Trades: Twenty-One (21) Weekly Total
High/Low Trade Outcomes: Seventeen (17) ITM + Four (4) OTM
Weekly High/Low Investments: $2,400.00
Weekly High/Low Returns Received: $3,492.50
Weekly High/Low Profit/Loss Totals: + $1,092.50 Weekly Profit
Total Ladder Options Trades: Nine (9) Trades | (11) Contracts
Ladder Option Outcomes: Seven (7) ITM + Two (2) OTM
Weekly Ladder Option Investments: $275.00
Weekly Ladder Trade Returns Received: $326.78
Weekly Ladder Trade Profit/Loss Totals: + $51.78 Weekly Profit
Total Amount Invested: $2,675.00
Total Returns Received: $3,819.28
Net Weekly Profit/Loss: +$1,144.28 Net Profit
Total Net Weekly ROI: +42.78% Weekly ROI
That’s it that’s all folks. Whew, that was a long one. But it has been one heck of a week in the markets and we did quite a fair bit of trading so there was a lot to go over. Even when trying to just briefly summarize the information. So it looks like our total for the week came out at a profit of $1,144.28, which is a 42.78% Return On Investment for the week. That is a very good weekly ROI. Shooting for 10-15% is what we’re generally after, but we’ll certainly not be complaining about tripling that goal. And looking back over our other weekly totals for the trading year so far (which actually started in Feb. for us), this was indeed our best week of the year so far.
Next week will definitely be a week to watch closely as well. Markets are truly in flux right now and bear very close watching if you are an active trader. This very well could be the start of a technical correction phase (a 10%+ drop from the highs), it could also be the start of a bear market (20%+ drop from highs), and it may even just be a fake out correction which gets promptly erased (we wouldn’t bet on that outcome though). It has been about 2 1/2 years since US markets have even had so much as a technical correction (that 10% we mentioned). We’ve been sounding the alarm about the very high probability of this happening for a couple of weeks now, and we are still fairly confident in our overall macro thesis regarding US equities markets.
Enjoy your weekend everyone. And always remember to…trade smart and be lucky!