TC + SPY Examples

Example: Intra Day trade on 21/10/14

There was a great SPY trading opportunity overnight. The signal would have been able to picked up from the start of the US session when the S&P500 was at 1,905:

S&P30min

Thus, I would have looked to buy the Oct $191 SPY Call Option.

This SPY Call Option ended up closing off at $3.61 after increasing $2.31. Thus, the SPY Option opened at $1.31.

SPYoption

ROIC = ($2.31/$1.31) x 100  = 177%

Example: Intra Day trade on Friday 03/05/13

Another great SPY trade presented itself during the US session on the 30 min charts. The signal came through when the S&P500 was at $1,582. Thus, I would look to buy the May $159 Call Option:

The May $159 Call Option opened at $1.30, increased by 0.68 cents and closed at $1.98 during the US trading session. That is an increase of 52%

ROIC= ($0.68/$1.30) x 100 = 52%. If only I didn’t need any sleep!
 

Example: Intra Day trade on Thursday 02/05/13

SPY trade: There was another great SPY trade opportunity off the S&P500 30 min charts during the US session. My TC signal came through when the index was at $1,588:

I would then look to buy the May $158 Put Option. This opened the session at $1.01 and finished at $1.64. That is an increase of $0.63 cents.
 
NB: I would not have got in at such a good price but this is the only data I can work from:
ROIC= ($0.63/$1.01) x 100 = 62% !
 

Example: Intra Day trade on Wednesday 17/04/13

This S&P500 SPY trade kicked off during the US session and gave a signal when price was at the $1,556 level:
I would then have looked to buy the April SPY $156 Call Option:
This Call opened up at $1.25 and, at the time of this number crunching, was at $2.16, an increase of $0.91 cents or 72%:
 
ROIC= ($0.91/ $1.25) x 100 = 72%
 

Example: Intra Day trade on Tuesday 16/04/13

SPY Put Trade: This fear, and these choppy divergent markets, gave a great SPY Put Option trade though for during the US session. A TC signal came though on the S&P500 when price was at $1,566.92. I would therefore have looked to buy the May $157 Put:

The May $157 Put opened at around $1.55 and is now at $2.79. This is an increase of about $1.24: 

The ROIC for this trade is around 80%!  ROIC= ($1.24/$1.55) x 100 = 80%

 
The Put would have moved in price before the purchase could take place though so these figures, as always, are the best approximation given the available data.
 
 

 

Example: Intra Day trade on Wednesday 06/03/13

The usual pattern of good 30 min trades for the S&P500 during US session in these choppy divergent markets has continued though. A TC signal came through when the S&P500 was at $1,531:
Thus, I would look to buy the March 27 $153 Call Option. This opened at $1.47 and, at the time of this write up, had risen to $2.33. That is an increase of $0.86 cents.
The ROIC = ( $0.86/ $1.47) x 100 = 58%

 

 

Example: Intra Day trade on Thursday 28/02/13 

 
As is the usual during times of Ichimoku Cloud divergence, there are often great trades off the 30 min charts during the US session. It was a ‘no brainer’ following the good US data and Bernanke that one should look for a signal on the S&P500. A signal to trade LONG came through when the index was at $1,496.
Thus, rounding up, I would then look to buy the March $150 Call Option. This Option opened at $1.64 and increased to be currently at $2.85. That is an increase of $1.21 cents:
The ROIC = ($1.21/ $1.64) x 100 = 74% for just one trading session.

 

Example: Intra Day trade on Tuesday 12/2/13

The 4hr charts have been choppy this week but there was a good SPY trade off the 30 min charts. A TS signal came during when the S&P500 was at $1,512.71. I would have then looked to buy the Feb  $151 Call Option:

The Feb $151 Call opened at $1.53 and was at $1.77 at the time of this write up. That is an increase of $0.24 cents.
A gain of $0.24 cents doesn’t sound like much but that is a return of about 16% for just a few hours. That isn’t bad given the choppy trading conditions!
ROIC = ($0.24/$1.77) x 100 = 16%

 

Example: Intra Day trade on Tuesday 5/2/13 

There was a great SPY ETF trade off the 30 min S&P500 charts during the US session last night. The risk off’ mood was always likely to continue through the US session, especially given the recent highs that had been achieved. It was not surprising to see the markets take a breather! The S&P500 gave a TS SHORT signal when the S&P500 was at 1,502:
I would have looked to buy the Feb $150 Put. This Put opened @ $0.82 cents and finished at time of this processing @ $1.46. That is an increase of $0.64 cents:
The ROIC for this trade is ROIC= (0.64/0.82) x 100 = 78%. That is a great return for just one day!

 

Example: Intra Day trade on Friday 18/01/13

The S&P500 gave a great SPY trading opportunity on the 30 min chart overnight. A signal to go LONG came in during the early US session and when the S&P500 was at $1467.

Thus, I would have looked to buy the Feb SPY $147 Call @ $2.00. This Call finished the day at $2.59.

The ROIC for this trade was 29%!   ROIC = [($0.59/$2) x 100] = 29%.

Not bad for one trading session!

Example: Intra Day trade on 23/11/12
The S&P500 also yielded a great 144 pip move and a possible 67% ROIC SPY trade today:

This TS signal came when the S&P500 was at $1392. Thus, I would have bought the $139 Nov Call Option.
This Option has increased by $1.05 to finish at $2.60. The Option opened at $1.55. The ROIC for this possible SPY trade was 67%:
 
ROIC =($1.05/ $1.55) x 100 = 67%

 

Example: Intra Day trade on Thursday 27/09/12

The currency markets have been a bit choppy this week so this has given me an opportunity to look back at possible SPY Put trades for the US session. There was a great opportunity this week during Tuesday’s US trading session. I received a ST signal to short the S&P500 on my trading platform and this would have been an excellent time to buy SPY Puts. One day I’ll move to this trading zone and get an opportunity to trade these!

Example: Intra Day trade on Tuesday 20/11/12 gives possible 70% ROIC!

The S&P500 ended up yielding a maximum of 160 pips overnight. There was a TS signal to ‘LONG” just before the US session. This signal came through when the index was at $1368.17:
Thus, if I was able to trade this, I would have bought the $137 Nov Call Option. This Option opened at $1.56 and closed up $1.11 to finish at $2.67:
This represents a return on invested capital of around 70%!
ROIC= ($1.11/$1.56) x 100 = 71%

 

Example: Intra Day trade from Friday 28/09/12

It has been a choppy week for currency trading but there were some good opportunities to day trade using SPY options. Friday 28/09/12 was another example. A TS signal to short the S&P500 was given early during the US session. This signal is noted with a vertical pink line through the signal candle:

This is then a signal to purchase a SPY put for the duration of the trading session. The signal came at an S&P500 value of 1437.72 so I would look at the SPY Nov PUT $144. Looking into this data on Morningstar I see that this Put increased in value by 0.35 cents during the trading session. Thus, working backwards:

Initial: Buy SPY Nov $144 Put = $2.56

Final:  Sell  SPY Nov $144 Put = $2.91. An increase of 0.35 cents.

Day Trading result: (0.35 cents/ $2.56 risk) x 100 = 13.7% ROIC (max possible)

NB: This data reflects the maximum possible return on such a trade based on available end of day data. Actual returns would most likely be lower though as you would never get into, and out of, the Put trade with the maximum yield. The %ROIC is a guide though to show how this type of Spy Put day trade can be profitable though.

Example: Wednesday 10/10/2012: Another great intra-day SPY trade opportunity

The US session on Wed 10th October provided another great low risk opportunity to trade the SPY ETF intra-day on the S&P500. A clear TS signals to ‘short’ the SPY came during the US session when price was at the 1432.50 level. Thus, I would then look to buy a November $143 PUT. The PUT cost was $2.23 and this closed at $2.53, an increase of 30 cents. This represents a ROIC gain of 13.5% for the short trade.

  • Initially:        Buy Nov $143 Put at $2.23
  • End of Day:  Sell Nov $143 Put @ $2.53
  • Profit = 0.30 cents

ROIC = profit/risk       ROIC= (0.30 cents/ $2.23) x 100    ROIC= 13.5%

NB: This represents the maximum possible gain on this $143 ETF for the day. I have used ‘end of day’ midpoint data to illustrate this example.

Example: Wednesday 17/10/12

This was another fantastic opportunity for an intra-day SPY ETF trade. A TS ‘LONG’ signal came in the late London/US session and yielded a clean, low risk 100+ pips.

This TS ‘LONG’ signal came through when the S&P500 was at $1436.23. Thus, I would have looked to buy the Nov $144 Call Option. This Option increased by 90 cents overnight! It opened at $2.43 and closed at $3.33. See below:
The maximum possible Return on Invested Capital for this trade, for just one session, was a whopping 37%. see below:ROIC = (0.90/2.43) x 100 = 37%! For just one trading session and a low risk trade!
 

Example: Friday 20/10/12:  77% (maximum) possible on a SPY ‘short’ day trade:

There was an amazing opportunity for a low risk, intra-day trade on the SPY last night. There had been little movement on the S&P500 for the previous two nights and, add to this, some poor Earnings news, and you had a perfect set up for a SPY ‘short’ trade.

A TS signal to go ‘SHORT’ came through during the US session when the S&P500 was at $1444.68:

I would then have looked to buy the Nov SPY $144 Put @ $1.51.

This Put Option increased in value throughout the trading session to up to $2.67. This represents an increase of $1.16:

The Return on Invested Capital for this trade was an amazing 77%:
ROIC = ($1.16/ $1.51) x 100 = 76.8% For just one trading session!
 

I have sometimes referred to this gain as ROR, Return on Risk. This is not entirely accurate though. Whilst I imagine it would be ‘possible’ I do suspect it is very unlikely that an Option would ever fall to a value of ‘zero’ during one trading session. Thus, whilst the purchase price here of $1.51 is ‘at risk’, it is unlikely that you would lose the whole $1.51 in one day if the trade went against you. Sure, you could easily lose 0.50 cents which would represent a risk, and subsequent loss, of around 30% but I would most likely close the trade at that point, if not before.

I am not in a position, just yet, to day trade the S&P500 and I would need to determine clear and concise ‘stop loss’ exit values for trades that do not work out.  The ADX would be my guide here, as always though, but you can see on the above chart that the ADX did not stop to draw a breath on Friday!

I need to also stress here that I working with back data and these values represent a maximum possible gain as it is unlikely that one ever gets in at the extreme top and bottom of a particular move.

Example: Thursday 01/11/12

There was another great intra day trade on the SPY ETF possible on the first day of the month for November. Statistically the first day of the trading month is more often positive than not and some traders use this knowledge as a basis of their trading. A very low risk: high return trade it was indeed. I got a TS ‘LONG’ signal on the S&P500 during the US trading session when the index was at $1406.14:

Thus, I would have looked to buy the Nov $141 Call Option. This opened at $1.98 and closed at $3.03. This was an increase of $1.05:
 
The return on invested capital was therefore:
ROIC: ($1.05/$1.98) x 100 = 53%!
 

This is the maximum possible gain as it would all depend on the ETF price at the time of purchase but I think you get the picture here!

 

Example: Tuesday 20/11/12 S&P500 intra day trade gives possible 70% ROIC!

The S&P500 ended up yielding a maximum of 160 pips overnight. There was a TS signal to ‘LONG” just before the US session. This signal came through when the index was at $1368.17:
Thus, if I was able to trade this, I would have bought the $137 Nov Call Option. This Option opened at $1.56 and closed up $1.11 to finish at $2.67:
This represents a return on invested capital of around 70%!
ROIC= ($1.11/$1.56) x 100 = 71%
 

This trade came with the added confluence that price had bounced of the bottom trend line from the daily chart trading channel:


Example: 23/11/12

The S&P500 also yielded a great 144 pip move and a possible 67% ROIC SPY trade today:

This TS signal came when the S&P500 was at $1392. Thus, I would have bought the $139 Nov Call Option.
This Option has increased by $1.05 to finish at $2.60. The Option opened at $1.55. The ROIC for this possible SPY trade was 67%
ROIC =($1.05/ $1.55) x 100 = 67%