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That Was The Week Ending18 May

Not Unexpected Move For Expiry Week FTSE up yet another percent- though it had become a feature in 2017 for ‘down’ expiry weeks. I make no suggestion that the big market players were short, but were they? We now seem to be all guns blazing onwards and upwards. Who or what could derail this ? […]

That Was The Week ending 04May

Uneventful, But Reminiscent of 2017 All the tiny daily gains wiped out on Thursday,then a big up on Friday. Weak pound/strong dollar, and non farm payrolls may have given FTSE a boost. Of course the old adage ‘Sell in May’ go away, come back on St. Legers day may still hold water. St. Legers day […]

That Was The Week Ending 27th April

Back Up To The Ceiling Well the eagerly awaited drop and subsequent hike in volatility didn’t happen. Our graphic shows how the FTSE reacted to the suddenly cheap £. So bad news makes the UK pound lose value but makes the market go up? Yup. FTSE is comprised of companies that make money all over […]

That Was The Week Ending 20April

Gentle Drift Lower for Vol. Gentle Drift Up For FTSE We closed out a long put for a handsome profit on Monday. This was a ‘pre-apocalyptic’ put trade.  The market suddenly decided the fear was overdone by Monday evening. In my view, politics, while grabbing headlines, may not serve us so well for trading, Major Events […]

That Was The Week ending 30March

 FTSE Madness A curious week with Thursday’s action seeing the ‘F’ drop 50 points at the end of the day. Cold feet ahead of the long break? Overall up just under 2% and volatility doing a few twists and turns. Again this does not seem reflected in options prices that we look at. The index […]

That Was the Week Ending 09March

Tariffs and Tantrums So, not everyone is happy about tariffs. Canada and Mexico exempted but Asian countries not amused. We are being treated to stable genius economics. Trade wars don’t usually work out well and Trump may have bullied rivals in tiny world, but not in the big world. Curiously the US economy ‘looks’ fabulous,and […]

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  • Trade77 A Flight of Fancy

    Trade77 A Flight of Fancy

      Starting With the Hard Bits What IS Trade 77? I thought it might be fun to try and mix things up with a mutant call butterfly, expiring in May. You may recall a butterfly is a short spread and a long spread which has risk limited to premium paid. This would thus cost  85+12.5 […]

  • Trade 76 When The Market's A Bit Too Happy

    Trade 76 When The Market’s A Bit Too Happy

    When Vol is Neither Big nor small We sometimes like to go directional, but an outright purchase of options is not …a great option. We could buy a put, a put spread,a call or a call spread. This would be safer than a combination (risk reversal for US traders). A combo is the buying of […]

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