"Best
Trade" Newsletter (February 22, 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.
Below you will find a Table of Trade Motivations and a chart showing the trades,
including detailed trade calculations.
|
Chart 1: |
NASDAQ 100 60-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 |
|
February 22, 2008 |
Buy Calls |
SBV oscillator advanced above minus 20% after
being below this level 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 60-day chart by making the short-term bullish indication stronger. |
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 |
|
2/22/2008 |
Buy QQQDR Calls |
$44 |
April, 2008 |
70 |
$1.55 |
In this example, we have based our QQQQ options trade
on the NASDAQ 100 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.
| 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. |