"Best
Trade" Newsletter (March 30, 2007)
For this "Best trade",
"Buy Calls" trade is opened
in order to close them later with profit if the
index moves in our favor.
Below you will find a Table of Trade Motivations and a chart showing the trades,
including detailed trade calculations.
|
Chart 1: |
S&P 500
SBV 5-day View
|
 |
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 |
|
3/30/2007 |
Buy Calls |
1. SBV oscillator dropped below minus 33% and
advanced above that
level back (see S&P 500 60-day SBV(20) chart). This reveals that there is a chance of a short-term move up and we bought
calls options.
2. Big buying volume surge in period between 11:00
and 12:00 |
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 |
|
03/30/2007 |
Buy SFBFL Calls |
$142 |
June, 2007 |
30 |
$4.00 |
In this example, we have based our SPY options trades on
S&P 500 volume indicators (PVO, SBV Oscillator). 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.
| Disclaimer: 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. |