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Best Trade of the Week
Go to Best Trades Archive  

"Best Trade" Newsletter (March 19, 2008)

+$3,100 in 2 days 

This "best trade" is a continuation of previous "Best trade" newsletter posted (sent to MV subscribers) on March 17, 2008.

This newsletter is intended for educational purposes only - it does not constitute trading advice, nor does it make or imply any market trend predictions. This newsletter illustrates examples based principally on MarketVolume® index volume indicators and advance/decline (AD) indicators. We do not mean to imply that you should follow our exact trades, but rather wish to suggest that you may make use of our analytics to develop your own trading style.

Security Return
Calls (SPY - SFBEA) +$3,100 +36%

Below you will find a Table of Trade Motivations and a chart showing the trades, including detailed trade calculations.

 
Chart 1: S&P 500 15-day Chart
 

In Table 1 - a 'Table of Trade Motivators' - we show the motivating factors that led us to take the above trades.

Table 1: Table of Trade Motivators

Date Trading
Decision
Motivation
March 17, 2008 Buy Calls

SBV oscillator started to advance based on the 60-day SBV(20) chart. This reveals that there is a chance of a short-term move up.

SBV oscillator advanced above minus 20% after being below this level based on the 15-day SBV(16) chart. This confirms  a chance of a short-term move up.

March 19, 2008 Sell Calls SBV oscillator declined below plus 20% after being above this level based on the 15-day SBV(16) chart. This confirms  a chance of a short-term move down.

Below we list in detail the actual trades made, along with the netted returns achieved.

Table 2:
Details of the trades

Date Trade Strike Expiration Contracts Contract
Price
Amount

03/17/2008

Buy SFBEA Calls $131 May, 2008 20 $4.35 -$8,700

03/19/2008

Sell SFBEA Calls $131 May, 2008 20 $5.90 -$11,800
Profit:    +$3,100
(+35.6%)

In this example, we have based our SPY options trade on the S&P 500 volume indicators. Using the principles outlined above, you may wish to trade options on the QQQQ, ^SPX, DIAMONDS (DIA). It is also conceivable that an analysis similar to the one shown below could be used to trade options based on the NASDAQ 100, Russell 2000, and other indexes.

©HGH Associated Traders

Important: The analysis results presented in the "Best Trade" may differ from the outlook presented in the daily Market Commentaries. Results may also differ from the trading signals generated for Exchange Traded Funds (ETFs), or from any other research and analysis efforts shared with our members. These are products developed by independent research teams, delivered to MarketVolume® members. While sharing some research results, these autonomous research teams may use different systems and may have dissimilar market outlooks.

 
2007
Date Indicator
December 24, 2007 SPY Options
December 20, 2007 SPY Options Trading
December 12, 2007 SPY Options
December 11, 2007 Trading SPY Options
November 30, 2007 SPY Options Trading
November 23, 2007 SPY Options
November 12, 2007 SPY Options Trading
November 6, 2007 SPY Options
October 16, 2007 QQQQ Options
October 11, 2007 QQQQ Options Trading
September 28, 2007 QQQQ
September 24, 2007 Trading QQQQ Options
September 12, 2007 QQQQ Trading
September 10, 2007 Options Trading
August 21, 2007 Trading QQQQ
August 16, 2007 QQQ
August 8, 2007 Trading Options
August 1, 2007 QQQQ Options
July 25, 2007 QQQQ Options Trading
July 18, 2007 Options Trading
July 17, 2007 Trading QQQQ Options
June 21, 2007 Trading Options
June 18, 2007 QQQQ Trading
May 17, 2007 QQQQ
May 16, 2007 Trading QQQQ
May 11, 2007 QQQQ Options
May 9, 2007 QQQQ Options Trading
May 1, 2007 Trading QQQQ Options
April 26, 2007 QQQQ Trading
April 17, 2007 Trading QQQQ
April 3, 2007 SPY Options
March 30, 2007 SPY Options Trading
March 26, 2007 QQQQ Options
March 23, 2007 QQQQ Options Trading

 
 

 
BOW Newsletters
2002:
NDX and SPX
2003:
S&P 500
2004:
QQQQ and S&P 500
2005:
QQQQ Options
2006 (first part): -
QQQQ Options Trading
2006 (second part): -
QQQQ Options Trading
2007:
QQQQ and SPY Options
2008:
QQQQ and SPY
 

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