NOTE: We discuss our "best trades" here mainly for educational purposes. The trading examples we illustrate are based principally on our volume indicators. Our main intent is to show you how you can apply our volume indicators and to explain the specific correlations that exist between volume surges and the movement of the indexes. We do not mean to imply that you should follow our exact trades, but rather wish to suggest that you may make use of our volume analytics to develop your own trading style. We also urge you to paper trade before committing your money to the markets.

For this "Best trade", "Buy QQQ Put #1" is opened
in order to close it later with profit if the index moves in our favor.
 

Recommendation:

If you trade options, we recommend you invest only a small portion of your assets - an amount that will fit your personal trading needs and risk tolerance. In our opinion, that amount should be about 10% of your total portfolio; it should never exceed 30%.

At the same time, we do not recommend that you commit more than 30% of your options portfolio to a single trade. If the market doesn't move in your favor, but indicators remain strong, you may choose to invest another 30% of your options portfolio on a second signal, and perhaps even on a third signal. By proceeding in this way, each time you enter the market in a better position, and usually the profit from the last trade will more than compensate for the loss from your first  trade.

These are the trades which netted the returns shown above:

We welcome any questions or comments you might have regarding this "best trade of the week".