FTSE Gets Above its Station!
What a cheek, FTSE‘s up and everything in the garden is coming up roses. Inflation, we’re told, is no problem. Unemployment is even less of a problem, in fact recruitment is the problem. So if any of our readers fancy driving a socking great HGV -the incentives are huge, and let’s be honest who hasn’t fancied having a go? I’m sure it’s not as glamourous as I believe. However other vacancies are going begging.
This week we have some controversial and informative links that are specific and general.
First off the bat: https://us12.campaign-archive.com/?u=6f6dd1454734e10d0f08f73e6&id=e01e5e93c7&e=a6d15b8777
It’s what we preach here but we don’t ever charge any fees.
Second: https://www.cmegroup.com/education/featured-reports/the-inflation-dichotomy.html#
Our esteemed friend Erik at CME brings some economic issues to our attention -and we love a chart
So, a really interesting article about stupidity -and that is something in which we can all stake a claim. No spoilers, it’s an interesting read.
Distraction Trades Down and UP
Dax- horrenous week, 2 losers one break even. 2 no entries yet the momentum was fickle. Remember losses are 30 pips, wins >100
XRP -what the actual????? Remember our averaged out buy price $.83 However, now a profit of $215 -Literally no idea! It’s a ‘tuck it away’ trade
Legacy Trades 229, 230, 231- what to do?
228 We Might Get Conservative – oh wait. We’re not Political
Here’s our dabble with a pitchfork-sell a deep ITM call ( 313) and 3 xputs (31.5) at the same strike 6700
However, we hadn’t tried this in a while and frankly the put vol was pathetic at 16%. Theta is massive but our overall deltas are curiously 0.20. Margin will be brutal but this might give us a quick reward, while risk is modest though it looks a little crazy.
Best we could do? On Wednesday 21st July the trade made 7!
then, a miserable loser but only losing 7 as of this week – it runs, and goes horribly against us. Sometimes you have to cut your losses, which is what we’d have done on Monday when it was 413 to close- a loss of around 6 LOSER!!!!
Trade 229 The Open Interest Gambit
A comfortable WIN
Trade 230 Calendar Time?
Well it’s not a happy time and if one expected a Vol explosion we’d do a reverse calendar. However we ‘seem’ to be in a tight range, so we are selling:
Aug 6850 puts x3,(13.5) Aug7150 calls(24) x3 and BUYING Sep 6850 put for 61, Sep 7150 call for 71.
Even with this brutal ratio play we are still placing a debit trade- a cost of 19.5. Hmmm not happy
Here’s why: 147.5 for Sept, 204.5 for Aug We can look at adjustments around expiry, but for now it’s horrible
Trade 231 and a Dodgy Threefer
This market seems to be hellbent on rising but we may see a litle downside and to position for that we buy 1×7250 put and SELL 3×7150 puts
Those prices 58.5 (35 intrinsic more or less) minus the short 7150 s 13.5 x3= 40.5 We have a debit of 18 we have risk at 7100 but could make 82. Theta favours us and a dull week would surely help out. Ideally of course, we’d like a dip down to 7150 at 10.15 am on Friday, please
