Binary Options S&P 500, Update

Times are New York time. Read the previous post here.

Trade #1: S&P 500 (Nadex:US500) 9:36 a.m. entry: Short the >2115 strike for a $43.75 debit with the index price at $2,122.73.

Trade #1: Exit 1:25 p.m.: For a $95.25 credit with the index price at $2,112.41.

Trade #1 Results: Shares declined by 0.5% over 3 hours 49 minutes, or a -1,116% annual rate. The binary options produced a 54.1% yield on debit, for a +124,097% annual rate.

Trade #2: S&P 500 (Nadex:US500) 2:39 p.m. entry: Long the >2103 strike for a $62.00 debit with the index price at $2,112.22.

Trade #2: Exit 3:50 p.m.: For a $20.25 credit with the index price at $2,109.51.

Trade #2 Results: Shares declined by 0.1% over 2 hours 3 minutes, or a -963% annual rate. The binary options produced a 67.3% loss on debit, for a -505,618% annual rate.

TOTAL RESULTS: On averages, shares declined by 0.3%, or a -1,046.7% annual rate. The binary options produced a 9.2% yield on debit, for a +31,365% annual rate.

The Trade #2 chart below shows the Nadex strike price of 2103 positioned at the estimated equivalent index market price of $2,111.58.

Click on chart to enlarge.

S&P 500 at 3:55 p,m., 1 day 30-minute bars

The price went below the previous lowest low, $2109.84, invalidating the trading signal that prompted me to enter the position. I exited for a loss.

Wave 3 {-2} to the downside appears to be in the 4th wave internally of its five-wave decline. If that is so, then the index will open the day with a fall, and once that wave 5 {-3} is complete, then the price will reverse to the upside, bginning wave 4 {-2} and providing a bullish trading opportunity.

-- Tim Bovee, Portland, Oregon, June 24, 2015

References

My trading rules can be read here.

Elliott wave analysis tracks patterns in price movements. The principal practitioner of Elliott wave analysis is Robert Prechter at Elliott Wave International. His book, Elliott Wave Principle, is a must-read for people interested in this form of analysis, as is his most recent publication, Visual Guide to Elliott Wave Trading. 

Several web sites summarize Elliott wave theory, among them, Investopedia, StockCharts and Wikipedia.

See my post "Chart Analysis: Nomenclature" for an explanation of my method for labeling waves on the chart.

Alerts

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Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

License



All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Based on a work at www.timbovee.com.Tss s ss'ss