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Tuesday, December 11, 2018

TRADING 101 … HUNTING OPPORTUNITY!

“And right here is where I said it just CAN’T GO LOWER”!

All of us have been there … and then volatility kicks in, and the market goes  
“ape shit” crazy in the other direction, leaving you sitting there wondering not 
only 1) what was I thinkin’, but 2) didn’t see that move coming, and finally 
3) too bad I couldn’t have played both sides, but there just isn’t a way.

Well today, I’m gonna show you “one of the ways”, and instead of using 
examples from crude oil, I’m gonna use an example from another market on 
NADEX … I did the trade for the signals service in the Russell 2000 stock 
index [RUT2000], and subs got it early this morning before stocks opened in 
New York. Specifically, I’m going to show you how to do what’s known as  
“Binary Option Arbitrage”, and get GUARANTEED PROFIT from the trade.  
[I’m assuming you’re up to speed with binaries, but if not, go to the initial blog 
post and follow the links to vids from NADEX on YouTube, and then come 
back.]

Scanning markets, starting last night in the “call spreads” [more on this strategy 
I like to use in a later blog post], and then early this morning in the “Binary” 
derivatives, I found a trade I was looking for in the Russell 2000 [RUT2000] 
… here are the specifics … RUT2000 futures market is around 1450, and the 
binary call at the 4:15 end-of-day expiration, for the 1462 binary is offered 
@ 18.75, while the binary call at 1464 is bid @ 22.50.

“Wait … wut”? … and so, what we got here is guaranteed money for the taking. 
1) If RUT2000 goes lower, they both expire worthless and my buy is lower 
than my sell so I make $3.75, 2) if RUT2000 goes higher, above 1464, I got a 
winner [100 - 18.75 = +$81.25] and I got a loser [100 - 22.50 = -$77.50], and I 
still make $3.75, and 3) if RUT at 4:15 PM EST., is above 1462 AND below 
1464, I got A LOT MORE in my pocket. IN OTHER WORDS, THIS IS 
ARBITRAGE WHERE YOU CAN’T LOSE MONEY, AND HAVE NO 
MONEY AT RISK! Directly below, the email confirmations from NADEX, in 
putting the position on for the signals service.

click to enlarge

click to enlarge

As you can see, I bought the lower strike cheaper than I sold the higher strike, 
at the same time … “I’ll do this all day long given the opportunity, CUZ I HAVE 
NO RISK OF LOSS”!

Now, we wait until the very end of the day in regards to market movement and 
see if the RUT2000 can close between 1462 & 1464 for some more free money 
… if so, great … if not, who cares …  and, I scan for this each and every day 
when I start my trading day around 4 AM EST, for each and every one of the 
NADEX 21 markets, to see if anyone wants to give money away … AND, it 
happens a lot more often than you would think!

Turning to WTI Crude Oil, a reprieve from the ChiComs, who apparently are 
cutting car tariffs … this is helping to support crude early on … about an hour 
before Noon in New York, and crude very quiet and choppy … market needs 
to “step it up” in terms of intraday volatility, cuz right now it’s dead … on 
Sunday’s blog update, I mentioned crude would most likely “notch it down”
little, since VIX was very high to be sustained … well, here it is.

Since stocks have opened, and the China car tariff news, WTI has been eerily 
quiet, and then when stocks falter and break down, WTI responds with some 
M1 gaps lower … no sell signal here, simply cuz there was no rally back to get 
appropriately short, and like everything else on the board, you sell shit in the 
hole, and you’re no better than the guy playing craps in Las Vegas … not a 
winning proposition. However, a double bottom low, followed by a step higher 
gives a buy signal, here late in the day … given the action, I’m not going to 
ride this, but simply scalp it, and when given the small bounce, I liquidated at 
a very small profit [6 CENTS]. So, even when oil is rather slow, it moves 10X 
faster than gold and actually trades … and the penny bid/offer spread is a big 
plus over the rip off CFD at Turnkey, where I could have never made this 
trade without losing money. Directly below, the email confirmations from 
NADEX of the WTI scalp trade.

click to enlarge

click to enlarge

Not much, to be sure, but everything adds up, especially in a small account!

Now in the New York afternoon, stock indices have turned around and are 
hugging the lows, and the RUT2000 position is almost worthless on both sides 
… no worries, it was a risk free trade, and unless something dramatic happens 
to further reverse the stock indices again, they both expire at 0 at 4:15 PM 
EST.

Tomorrow on the blog, I’ll point out other volatility strategies I like to utilize, 
and which I use for the signals service when they appear … very high 
probability trades with very limited risk exposure, and MAX profit potential, 
and isn’t this what trading is supposed to be about? … “Hell yes, and it’s why 
the crude blog site was established, and why I trade NADEX products … cuz the 
more you know, the more you’ll realize it pays to be here”!

So, onto tomorrow and more opportunity … I’m outta here … until tomorrow 
mi amigos … Onward & Upward!!

Have a great day everybody!!

UPDATE 4:15 PM EST.: Our binary options trade in RUT2000, has indeed 
seen both sides expire worthless and at “0”, so no additional gain from when 
the trade was initiated.

-vegas

OUR NADEX SIGNALS SERVICE IS UP & RUNNING … DAILY WTI 
CRUDE OIL SIGNALS & “VOLATILITY” STRATEGIES IN 20 OTHER 
MARKETS, INCLUDING COMMODITIES, FX, & STOCK INDICES! 
“what on earth are you waiting for”?











 







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