Wednesday, July 8, 2015

Binary Options S&P 500, Exit

Times are New York time.

I've opened a bearish position on S&P 500 binary options.

S&P 500 (Nadex:US500) 9:55 a.m. entry: Short the >2056 strike for a $44.88 debit with the index price at $2062.33.

Exit 12:55 p.m.: For a $76.25 credit with the index price at $2,054.79.

Results: Shares declined by 0.4% over three hours, or a -1,096% annual rate. The options produced a 69.9% yield on debit, for a +204,101% annual rate.

Click on chart to enlarge.
SPX at 1:15 p.m., one day 5-minute bars
The price fell steadily through most of the day. I exited when the price began to turn up, confirmed by an oversold signal from the Stochastic Slow %D line on the 15-minute chart.

-- Tim Bovee, Portland, Oregon, July 8, 2015


My draft day-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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