Best Trade of the Week
"Best Trade" Newsletter (July 8, 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.
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Chart 1: |
S&P 500 60-day Chart
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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
|
Date |
Trading
Decision |
Motivation |
July 8,
2008 |
Buy Calls |
SBV oscillator started to advance and advanced
above minus 33% after being below this level based on the 60-day SBV(20) chart. This
reveals that there is a chance for an up-move.
Very solid buying volume
accumulation, huge buying volume surges and absence of the selling volume point
to the higher odds of a recovery as well. |
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 |
|
07/08/2008 |
Buy QQQIS Calls |
$45 |
Sept, 2008 |
50 |
$2.44 |
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 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.
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2007 |
|
Date |
Indicator |
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December 24, 2007 |
SPY Options |
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December 20, 2007 |
SPY Options Trading |
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December 12, 2007 |
SPY Options |
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December 11, 2007 |
Trading SPY Options |
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November 30, 2007 |
SPY Options Trading |
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November 23, 2007 |
SPY Options |
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November 12, 2007 |
SPY Options Trading |
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November 6, 2007 |
SPY Options |
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October 16, 2007 |
QQQQ Options |
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October 11, 2007 |
QQQQ Options Trading |
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September 28, 2007 |
QQQQ |
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September 24, 2007 |
Trading QQQQ Options |
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September 12, 2007 |
QQQQ Trading |
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September 10, 2007 |
Options
Trading |
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August 21, 2007 |
Trading QQQQ |
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August 16, 2007 |
QQQ |
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August 8, 2007 |
Trading Options |
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August 1, 2007 |
QQQQ Options |
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July 25, 2007 |
QQQQ Options
Trading |
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July 18, 2007 |
Options
Trading |
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July 17, 2007 |
Trading QQQQ Options |
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June 21, 2007 |
Trading Options |
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June 18, 2007 |
QQQQ Trading |
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May 17, 2007 |
QQQQ |
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May 16, 2007 |
Trading QQQQ |
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May 11, 2007 |
QQQQ Options |
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May 9, 2007 |
QQQQ Options
Trading |
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May 1, 2007 |
Trading QQQQ Options |
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April 26, 2007 |
QQQQ Trading |
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April 17, 2007 |
Trading QQQQ |
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April 3, 2007 |
SPY Options |
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March 30, 2007 |
SPY Options Trading |
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March 26, 2007 |
QQQQ Options |
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March 23, 2007 |
QQQQ Options Trading |
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