Hopefully everyone had a decent trading week, and will have an even better weekend off. It was certainly a pretty good week for markets overall, until Friday at least, when they gave up almost all of the week’s gains up to that point. And Friday’s action also leaves a pretty big question mark over where markets might be going next. It was definitely not what the bulls were hoping to see. It is, however, exactly what we were expecting to see. It was also a pretty strong week for our own trading and account balances. With a total of three days traded, and three days of decent profits. And then there was Friday, which was just an all-around great day for us because we had correctly predicted that sharp declines would materialize as soon as price approached that 1,900 level. And that is exactly what happened, enabling us to profit quite nicely all along the way. But let’s start out by taking a look at a weekly chart for the S&P500 index, our favorite broad market proxy.
As we can from the above chart, price basically steadily rose throughout the week until Friday, where it began to flirt with that 1,900 price level, fail to breach it, and then begin to sharply decline after that for the rest of the day. For the week as a whole it still finished up around 7 points higher than it was at last Friday’s closing bell though. But I certainly wouldn’t be counting on that trend continuing into next week.
Binary Options Trading Totals For 3/31 – 4/4
Monday, March 31st Trading Summary
As we can see from the shot of our expired position from Monday it was a very brief trading day for us. This is partly because our first two trades went very well, and then the market went largely flat (and therefore unattractive to trade) after that. And partly because we had a long-term trade expiring which had been opened two weeks ago for the amount of $500. We felt that the outcome of this trade would be enough for one day, whichever way it went. So how did it go?
As you can see from the expiry chart above, it went wonderfully. What you can’t see is that this was one of our best trades in a while in terms of how right we turned out to be. Two weeks prior to this the EUR/USD pair was trading at a little over the 1.39 level, and we were publicly calling for it to begin declining back down towards the 1.37 level. And in this case we felt very strongly about the call and therefore we “put our money where our mouth was,” so to speak, with a $500 investment, which paid out $885 upon expiry.
Total Trades Closed: Two (2) Standard High/Low + One (1) Long-Term
Trading Outcomes: Three (3) ITM
Total Investments: $700.00
Total Returns Received: $1,233.00
Total Daily Profit/Loss: +$533.00 Daily Profit
Daily ROI: +76.14% Daily ROI
Monday – 3/31 Journal Entry
Tuesday, March 25th Trades Summary
There were no trades made for Tuesday, April the 1st.
Wednesday, April 2nd Trades Summary
Wednesday’s trading was interesting in that we made no standard high/low binary options trades at all. Instead, all of the day’s trading was done using the fairly new contract type offered by GOptions and a few others, Ladder Options. We purchased a total of 7 ladder option contracts, but it was actually only two separate trades. One trade on Oil which used 5 contracts, and one trade on the EUR/USD pair with 2 contracts. It was part of a new strategy we are trying to develop for the ladder option contract. It definitely shows promise so far but it is still a work in progress at the moment. You can read a bit more about it in our trading journal entry for this day though, which you’ll find linked at the end of this summary.
Ladder Option Trade Totals For 4/2/2014
Total Trades Made: Seven (7) Ladder Option Trades
Trade Outcomes: Four (4) ITM + Two (2) OTM + One (1) TIE
Total Investments Made: $300.00
Total Returns Received: $369.17
Daily Profit/Loss Totals: + $69.17 Profit
Daily ROI: + 23.06% Daily ROI
Wednesday – 4/2 Journal Entry
Thursday, April 3rd Trades Summary
There were no trades made for Thursday, April the 3rd.
Friday, April 4th Trades Summary
Friday was another interesting day of trading, but for a few reasons. It was of course the day that US indices started their corrective plunge, which we had correctly called, so that was good (and profitable). But then we also did things differently on Friday, deciding to have a bit of fun by hopping around between three separate binary options trading accounts which we happen to currently have open. We have three active accounts right now because we had recently moved out main trading account from Traderush over to GOptions, but didn’t close the Traderush account. And in addition to those accounts, we have a Boss Capital account which was opened recently so that we could review them. And since all three platforms offer different contract varieties we decided to play around a bit and traded different contracts on each platform for the day.
Boss Capital Boundary Option Trade Summary
Trade Outcome: ITM
Entry/Market Price: $101.285
Boundary Levels: $101.189 > X < $101.401
Expiry Price (X): $101.295
Amount Invested: $100.00
Returns Offered: 70%
Returns Received: $170.00
Profit/Loss: + $70.00 Profit
GOptions Ladder Options Trades Summary
Total Ladder Trades: Seven (7) Ladder Option Contracts (two trades)
Trade Outcomes: Five (5) ITM + Two (2) OTM
Total Investments Made: $175.00
Total Returns Received: $197.42
Daily Profit/Loss Totals: + $22.42 Profit
Daily ROI: + 12.81% Net Ladder Option ROI
TradeRush Standard High/Low Trades Summary
High/Low Trades Closed: Four (4) Put Option
High/Low Outcomes: Four (4) ITM
High/Low Investments: $555.00
Returns Received: $968.15
High/Low Profit or Loss: +$413.15 Profit
Daily Investment Totals For 4/4/2014
Total Daily Investments: $830.00
Total Daily Returns Received: $1,335.57
Total Daily Profit/Loss: $505.57
Total Daily Net ROI: = +60.91% Daily ROI
Friday – 4/4 Journal Entry
Weekly Roundup March 31st – April 4th
As you have seen it was a pretty darn good week, or three trading days anyway. All three were profitable, with two of them being quite significantly so. It is definitely how we like to see a month start out. Let’s look at some totals for all the numbers above, shall we?
Total Standard High/Low Trades: Seven (7) High/Low Contracts
High/Low Trade Outcomes: Seven (7) ITM + Zero (0) OTM
High/Low Investments: $1,255.00
High/Low Returns Received: $2,201.15
High/Low Profit/Loss Totals: + $946.15
Total Ladder Options Trades: Fourteen (14)
Ladder Option Outcomes: Nine (9) ITM + Four (4) OTM + One (1) TIE
Ladder Option Investments: $475.00
Ladder Trade Returns Received: $566.59
Ladder Trade Profit/Loss Totals: + $91.59
Boundary Option Trade: ITM
Investment Amount: $100.00
Returns Received: $170.00
Boundary Profit/Loss: + $70.00
Total Amount Invested: $1,830
Total Returns Received: $2,937.74
Net Weekly Profit/Loss: + $1,107.74 Net Profit
Total Net Weekly ROI: +60.53% Weekly ROI
Whew! Finally done, that was a marathon roundup. But as you can see, it was also one heck of a week with a 60.53% weekly ROI. That’s a great week, and one that we would be perfectly happy with having every week. We are also VERY interested in market action next week, and will be closely observing, and actively trading the US indices and equities. As things stand at the moment we have a decidedly bearish outlook. But in the end, we follow price action, not our personal macroeconomic theories. So we will just have to wait and see if Friday’s declines are confirmed on Monday. Good luck out there, trade smart and be lucky!