“Guess where I’m standing!?”
“They keep making me take their money”!
Today sees a great bunch of trades on the signals service, not only via “binary
option arbitrage”, but also in the Russell 2000 [RUT2000] “call spreads”, where
I utilized our “volatility call spread strategy”, to profit just shy of 100% on MAX
THEORETICAL risk capital in the trade … looking at a more realistic risk
profile, it was well above 200%+! And while today’s blog post may seem a bit
lengthy, do yourself a favor and wade through it and understand “why & how”
we rang the register today with a series of trades that were “RISK FREE” & a
“call spread” that had a 99%+ profit probability BUILT INTO IT, when I put
it on last night right after the open … “this mi amigos, is the way to trade”!!
First trade I put up was the RUT2000 “volatility call spread strategy” where I
got a very good price in the 2 CS’s combined at 7.5 index points. The NADEX
CONFIRMATION EMAILS are directly below.
click to enlarge ALL
Once I had that trade on, I immediately went to the “binaries” and found 2
“binary option arbitrage” opportunities, in the RUT2000, that provided risk
free returns at expiration. Basically, I’m buying the lower strike prices at
lower prices than I’m selling the higher strike prices at higher prices … “it’s
risk free money folks, do the math”! … those NADEX EMAIL
CONFIRMATIONS directly below.
At this point, I turned my attention to the WTI Crude Oil binaries, and put on
another “risk free” trade. The NADEX CONFIRMATION EMAILS directly
below.
OK, sit back and relax, and let the scumbag LP’s do their “schtick”, and work
for us, and hours later I see on the P/L, on my NADEX screen, another
discrepancy in crude oil, except this time, they’ve taken the 2 binaries I’m
positioned in, and “flipped the script” to the other side!! … “again, you’re
twisting my arm to take the money, but OK, you talked me into it”! … I see the
profit over and above what I should be making at expiration, and I liquidate
immediately pocketing the cash for the signals service. Directly below, the
NADEX EMAIL CONFIRMATION of the WTI Crude Oil liquidations.
Ok, so what do we have here: at expiration, I should pocket about $40 from the
position, if both out of the binary range … here are the prices: in the 48.80
binary, B5 @78.75 - S5 @50.75 = -28.0 = -$140. In the 48.90 binary, S5 @87.25 -
B5 @35.75 = +51.50 = +$257.50. So instead of waiting for expiration, I’ll take
the $257.50 - 140 = $117.50 … “thank you, come again”!
Headed into the NYSE open, and meanwhile, GOLD IS DEAD … so, in case
anybody is wondering if I can multitask here, the answer is obviously yes, but
headed into stocks opening, we get a little pop in price in the RUT2000 to the
1400 level, and … BING … BANG … BOOM! … “CUZ THE MATH
DOESN’T LIE SKIPPY”, and probability theory delivers the goods again!
Remember, going into this “volatility call spread strategy” position last night
just after the open, we got a 99%+ probability of profit in this position, with
even the tiniest of moves in the RUT2000 … “and again, they twist my arm to
take the money, so I’m gonna do it”! Directly below, the NADEX EMAIL
CONFIRMATIONS of the CS liquidations.
On the 1390 - 1420 RUT2000 call spread, I bought 1 lot @ 1394.5, and then
sold it this morning @ 1401.0, for a profit = +6.5 index points = $65. On the
1360 - 1390 RUT2000 call spread, I sold 1 lot @ 1387.0, and then bought it this
morning @ 1387.0, which was a wash trade … commissions on this was $4, so
I netted $61. MY MAX THEORETICAL RISK IN THIS POSITION WAS $75,
so based on that I returned approximately 80% … in reality, though, the risk
of loss is about half the theoretical, or $37, and on that amount the position
returned approximately 170%.
With daily ranges in the RUT2000, well into the 20+ index points, if equal sides
of this “synthetic straddle” are priced approximately the same, then all it takes
is the tiniest of moves ONE WAY OR THE OTHER, for one side to “pop” for
profit, while the other side remains dormant or loses very slightly … it doesn’t
really matter which way the market goes, cuz the losing side is “capped” by
either its floor or ceiling and can’t go farther … the profit side, though, has
room to run … and cuz of this, these 2 CS’s together at as a traditional
“straddle” when it comes to profit. “And we know, cuz we’ve done the homework
in terms of 1) the 20 Day Range MA, and 2) SDEV, where the historical
probabilities are in relation to how “little” the day’s range is likely to be, and
when both sides of the CS are done with equal pricing, it doesn’t take much to
make good money … and it doesn’t hurt to have the laws of probability on your
side either”!
So, assuming all of our binaries expire worthless, we got 117 [oil binary] + 61
[CS RUT2000] + 40 [other RUT2000 binaries] = +$218 in a small account,
where all the positions I did could have been taken with less than $2 in the
account … “that’s 10%+ in a day, with no risk in some, and very little risk in
the other … find me another place where I can trade strategies like this for
profit … Turnkey, Assets FX, PAX Forex, or any other offshore brokerage
house? … Nope, not even close … “this is the better way to trade folks”!
Bottom line is this: “I’ve flipped the script on the scumbag LP’s in these major
markets … no longer am I at their mercy … now, they work for me, cuz
whenever they go and screw longs or shorts, I’ll be there to take profits on the
winning side, while the losing side goes nowhere … Marie Antoinette trading if
you will, cuz I got my cake and I’m eating it too”! Combine this with the
binaries, and some days you don’t even need to trade oil or anything else for
that matter, to turn a small account into a big account!
Today alone, one frickin’ day, pays for 2 entire years of service signals … “we
had more risk of getting hit with a meteorite today, than losing money”! And if
you don’t have a large account to trade, you know how hard it is to grow an
account to a size that matters. If you don’t understand what I’m doing, take
the time to learn … once your head “gets this”, you head will explode!
Onto tomorrow, where the FED takes center stage at 2PM EST … I’m outta
here … good day today, let’s do it again tomorrow!! … until then mi amigos
… Onward & Upward!!
UPDATE 4:15PM EST: Our 4 remaining binaries in RUT2000 have expired
worthless, so no windfall today, other than what I reported earlier for our risk
free trades.
Have a great day everybody!
-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”?
