S&P 500 (Nadex:US500) 10:24 a.m.: Long >2075 for a $61.50 debit with the symbol price at $2,085.92.
I entered based on an Elliott wave count. The primary count, A-B-C on the downslope, assumes a counter-trend correction. The alternate count, 1-2-3 on the downslope, assumes a declining primary trend. In either case, the analysis points toward an upward move today, so I've gone long.
1:35 p.m.: I exited the position for a $95.50 credit with a symbol price of $2,095.24. I close enough to full profit that I judged it was worth $4.50 to avoid 2-1/2 hours of time risk.
The S&P 500 gained 0.5% over three hours and 11 minutes, or a +1,230% annual rate. The options produced a 35.6% yield on debit, for a +97,971% annual rate.
Click on chart to enlarge.
|S&P 500 1:45 p.m. New York time, 5 days 15-minute bars|
-- Tim Bovee, Portland, Oregon, June 16, 2015References
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.
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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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