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Best Trade Newsletters
"Best
Trade" Newsletter (April 26, 2007)
For this "Best trade",
"Buy Puts" 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.
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Chart 1: |
NASDAQ 100 SBV 5-day View
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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
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Date |
Trading
Decision |
Motivation |
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4/13/2007 |
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High-magnitude
selling surges
were noted in the NASDAQ 100 sector. The volume seen on this day exceeded the average volume over the
previous 10 trading days by 14%.
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4/17/2007 |
Buy Puts |
High-magnitude
selling surges
were noted in all market sectors. The NASDAQ 100 volume seen on this day exceeded the average volume over the
previous 10 trading days by 14%. The
S&P 500 by 12%, and the DJI by 20%.
Big selling volume surge was noted in period
between 13:30 and 14:40
The SBV
oscillator declines below plus 33% (after having been above that level) based on
the NASDAQ 100 60-day
SBV(20) chart. This reveals that there is a chance of a short-term move down and
we bought put options.
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4/20/2007 |
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High-magnitude
selling surges
were noted in the DJI sector. The volume seen on this day exceeded the average volume over the
previous 10 trading days by 46%.
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4/25/2007 |
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High-magnitude
selling surges
were noted in all market sectors. The
NASDAQ 100 volume seen on this day exceeded the average volume over the
previous 10 trading days by 44%. The
S&P 500 by 21%. The DJT by 50%. The
last time similar volume surge in NASDAQ 100 sector was seen on February 27,
2007.
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4/26/2007 |
Buy Puts |
High-magnitude
selling surges
were noted in the NASDAQ 100 sector. The volume seen on this day exceeded the average volume over the
previous 10 trading days by 21%.
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Below we list in detail the actual trades made,
along with the netted returns achieved.
Table 2: Details of the trades
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Date |
Trade |
Strike |
Expiration |
Contracts |
Contract
Price |
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04/17/2007 |
Buy QQQRT Puts |
$46 |
June, 2007 |
70 |
$1.47 |
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04/26/2007 |
Buy QQQSU Puts |
$47 |
July, 2007 |
70 |
$1.40 |
In this example, we have based our QQQQ options trade on
the NASDAQ 100 volume indicators (PVO, SBV Oscillator). Using the principles outlined
above,
you may wish to trade options on the SPY, ^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. |
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2006 (first part) |
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Date |
Indicator |
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June 28, 2006 |
QQQQ Options |
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June 15, 2006 |
QQQQ Options Trading |
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June 15, 2006 |
Options Trading |
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May 17, 2006 |
Trading QQQQ Options |
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May 12, 2006 |
Trading Options |
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May 11, 2006 |
QQQQ |
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May 8, 2006 |
QQQQ Trading |
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April 27, 2006 |
Trading QQQQ |
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April 26 2006 |
QQQQ Options |
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April 18, 2006 |
Trading QQQQ Options |
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April 17 2006 |
QQQQ Trading |
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March 29, 2006 |
QQQQ Options |
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March 28 2006 |
Options Trading |
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March 14, 2006 |
QQQQ |
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March 10 2006 |
QQQQ Options Trading |
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March 8, 2006 |
Trading QQQQ Options |
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March 3, 2006 |
QQQQ Options |
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February 28, 2006 |
QQQQ Trading |
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February 8, 2006 |
Options Trading |
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February 2, 2006 |
QQQQ Options |
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January 31, 2006 |
QQQQ |
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January 29, 2006 |
QQQQ Options |
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January 20, 2006 |
QQQQ Options Trading |
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January 13, 2006 |
QQQQ Options |
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