After the open the futures ran up to about 4250 and the option briefly dropped below $5, then traded in the $6-$8 range for about an hour. Anyone who grabbed that entry watched the options move up above $35 within a couple of hours, for a potential profit of roughly $1200-$1500. They closed well in the money. … The trade on the 4175 Put was almost as good. Maximum at risk under $100
Continue reading
The ES dropped another 70 points and the 4250 Put that cost $6 before the open was worth $50 at the close. At the best entry the maximum risk was $250; with the best exit, the potential profit was $2250. You didn’t have to get the whole hog to eat well that night.
Continue reading
Few clear-cut trading opportunities. The 4250 Calls did drop below $15 for a brief period and it was possible to sell them back into the market above $30. But the price was a little high and the profit a little low.
Continue reading
The market rallied steadily throughout the day, but the 4200 Calls were too expensive, and the Puts declined along with the price. There was a brief moment when it was possible to make a very small profit from the 4200 Puts but the opportunity disappeared quickly.
Continue reading
At the time Nat recommends buying the 4145 Put it is trading above $20, also outside Nat’s comfort level. But as the market rallies into the end of the morning session, the price drops to Nat’s sweet spot, the $6-$10 range. The price whipsaws a bit in the afternoon session but eventually reaches ~$25 near the close.
Continue reading
Results of the two trades: Overnight trade: max risk, $125; max profit $375.
Day session trade: max risk, $300-$500; max profit $1500-$1700.
The actual profit will likely be less, and perhaps much less, depending on how the trader executed the trade. But the difference between the small amount of money at risk and the potential profit is remarkable.