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Below you will find a Table of Trade Motivations and a chart showing the trades, including detailed trade calculations.

For this “Best trade”, A trade (Buy Calls) is opened
in order to close it later with profit if the index moves in our favor.

Chart 1:	Options trades on the S&P 500 Advance Decline Indicators and High Magnitude Volume. February, 2006.

In Table 1 - a "Table of Trade Motivators" - we show the motivating factors that led us to take the above trades.

Table 1: Table of Trade Motivators

Below we list in detail the actual trades made, along with the netted returns achieved..

Table 2: Details of the trades

In choosing the options for these trades, the following criteria were used:

• We chose options with at least two months left until expiry;
• We chose one of the cheapest available in-the-money options.

How can this chart be used by me?

Our main reason for publishing these charts is to allow our members to learn by another example how they can make trades based on our volume and advance/decline indicators. Members can gain a better understanding of how to enter and exit the market, based on when a signal is generated. To learn from these charts, you do not need to trade the specific security mentioned in this publication, but whatever security you feel comfortable with. The principles for trading QQQQ shares will not change when trading something like S&P 500 futures.

Should I try to paper trade before trading options?

Yes! We suggest that anyone who is new to our signals and analysis try doing some paper trading to start, at least until they are comfortable with interpreting our signals. Only very experienced traders should trade options because of the high risk involved. You can always trade index shares instead of options and still make a decent profit, but returns will not be as large.