- S&P 500 (Nadex:US500) 11:22 a.m.: Short >2082 for a $79.75 debit with the symbol price at $2,084.73.
- Exited 3:06 p.m. for a $95.50 credit, with the symbol price at $2,082.63
- The index declined by 0.1% over 3 hours 44 minutes, or a -236% annual rate.
- The options produced a 16.5% yield on debit, for a +38,698% annual rate.
|SPX at 3:37 p.m. New York time, one day 15-minute bars|
The second bar from the opening bell wad a clear reversal signal in candlestick analysis. The better play would have been to go long from that point. Having gotten in at the beginning of a sideways pattern, I exited early reduce total time risk of the position, a decision that reduced by potential $20.25 profit per contract by $4.50.
-- Tim Bovee, Portland, Oregon, June 15, 2015References
My volatility trading rules can be read here.
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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
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