Friday, June 19, 2015

Friday's Binary Options, Exit

Friday's binary options trades. Times are New York time. Read the entry post here.

S&P 500 (Nadex:US500) 11:57 a.m. entry: Short the >2110 strike for a $69.76 debit with the index price at $2,115.56.

S&P 500 (Nadex:US500) 11:57 a.m. exit: Bought for a $95.50 credit with the index price at $2,111.36.

Results: Shares declined by 0.2% over three hours and eight minutes, or a -555% annual rate. The binary options produced a 27.0% yield on debit, for a +75,383% annual rate.

The chart below shows the Nadex strike price of 2110 posited at the equivalent index market price of $2,118.06.

Click on chart to enlarge.
SPX at 3:20 p.m. New York time, 2 days 1-minute bars
Using Elliott wave analysis, I counted Thursday's index high of $2,126.65 on Thursday as being the peak of wave 3 to the upside. The index is now in a 4th wave correction to the downside.

Once wave 4 is complete, SPX will resume its upward course as wave 5, which will, according to Elliott wave lore, move above Thursday's high.

-- Tim Bovee, Portland, Oregon, June 19, 2015


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, InvestopediaStockCharts and Wikipedia.

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


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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.

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Based on a work at s ss'ss

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