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  1. #1
    Legendry Member Michael Hodges's Avatar

    NADEX Weekly Binary Options Trading !!!

    New thread here, for more of the longer term trading. We can post mid week strategies too, I just want to be sure this one stays focuses on longer term strategy, swing trading and the like.

  2. #2
    Legendry Member Michael Hodges's Avatar

    End of week trade; the power of leverage with NADEX trading. !!!

    Ok, this is a trade I started earlier this week.

    1-I've been growing more and more bullish on the market. The economy, earnings outlook, tax reform and deregulation bode nothing but good for the US indices. Lately the SPX has been consolidating at/near all time highs and looking like a major break out is underway.

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    2 - This week the index was about to touch the moving average, the indicators were set up for trend following entry, and I just had a really good feeling. I did not know that the rally was going to happen this week, only that it was (my opinion of course), so I had two choices.

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    3- my first choice was to the safe trade. This would cost me about $50, but in order to protect my money I would have to sell if the market moved against me. My second choice was to do the risky trade, the out of the money trade, and this is why I took it; for one thing it only cost me $5 so if I lost the whole thing it would probably be less loss than if I used the "less risky" at the money strike, the clincher though was that I was pretty sure that if the market did rally it would at least move beyond the strike I choose, and so far I am mostly right. The market has indeed begun to rally, my trade is hovering ATM at the moment which means it has been selling for between $35 and $45 over the last day. At the time of the screen shot my paper profits were 500%, if the trade close ITM it will produce in excess of 2000%. That's the power of leverage my friends and that is why NADEX rules, spot trading drools.

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  3. #3
    Legendry Member Michael Hodges's Avatar

    Playing Trump Volatilty !!!

    The market could go either way from where it is today, literally. There is a lot of data due out this week, the FOMC, the NFP, earnings the works, plus the Trump effect. So, here is a trade I just put on with weekly expiry that plays into the volatility game. The only way I lose is if both legs close out of the money, or if I fail to close positions when the opportunity arises.

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  4. #4
    Legendry Member Michael Hodges's Avatar
    I'm going to try and buy to close the short leg, try to cut little bit of the losses, the long leg is in the money as I write this and the market looks bullish for the day so I'm going to let it ride. Otherwise, I could close it for a profit near 100%, I'm going to wait though.

  5. #5
    Legendry Member Michael Hodges's Avatar

    SPX Trend Following Trade, Swinging For The Fences !!!

    Due to a variety of factors including trend, yesterday's break out, earnings, economic data, slowing cooling Trump fear and a generally positive forward outlook I'm bullish. I think today may see a nice rally so I am making a trend following trade using an OTM option strike. This means a low entry cost, a high return but a much riskier trader because the SPX will have to move at least 10 points for me to go ITM. If so the payout is huge, more than 800%. Check it out, I'll update on how it's working later in the day. Oh yeah, I'm using the weekly option expiration, but it's Friday so that means it's really only a one day trade. TTFN.


    grr, it's not letting me upload my chart.... grrrr.

    OK, basic info is buying 2 calls at the 2315.50 strike, cost with commissions on both ends of the trade is $21 with a possible return of $179 or over 800%.

  6. #6
    Legendry Member Michael Hodges's Avatar
    I closed one leg of this trade, made a small profits so now the 2nd option is just free money. Let's see where it goes.

  7. #7
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Michael Hodges View Post
    I closed one leg of this trade, made a small profits so now the 2nd option is just free money. Let's see where it goes.
    I closed the 2nd leg for $37.50, first leg for $21.65, total return is $59.15. My cost was $21 with commissions, my net return was 38.15 for an ROI of 181%. Pretty dam good.

  8. #8
    Legendry Member Michael Hodges's Avatar

    SPX end of day and end of week trades !!!

    This week I am pretty bullish about the market so to start with I did not hedge this trade yet. I may, but I will wait at least until after the market opens before doing so. don't forget, you can trade end of day and end of week strikes at NADEX before the market is officially open because the SPX is based on the FUTURES market and not the actual index. They track each other, but they are not exactly the same thing.

    So, end of day I bought slightly OTM, a few points, for an average entry price of $38.50. I bought 2.
    End of week I went a little more OTM, the 2373.50 strike, which will require a 20 point move over the course of the week. By my estimates, if the market moves this week as I think it will 20 points should be no problem, we might get that on a single day.

    I will be looking to close these positions early if the opportunity presents itself, there just isn't any reason not to take profits when they are in your face.

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  9. #9
    Legendry Member Michael Hodges's Avatar
    Wow, I thought we could have a good rally today but I wasn't sure, and I am pleasantly surprised at the same time... SPX up more than 11 points right now. My end of day trade is well in the money at this time, the end of week trade is looking pretty good, and I also entered a 20 minute trade just after 10AM, and before that last big upsurge...

  10. #10
    Legendry Member Michael Hodges's Avatar
    The end of day trade closed in the money, I closed it early though at $95.50 each, nearly max profit, more than 100% return. just the way I like it.

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