That Was The Week 28July

←VIX got going

FTSE’s Tiny Range.(+40, -80) Little Volatility

FTSE cash index-    7453 open close 7368 high 7487 low 7339   (  last week 7378 open close 7453 high 7515 low 7378 )

FTSE volatility-     open 10.13 close 10.30   (last week open 9.64 close 10.13 )

What Trades Would Have Done well?

Anything utilising theta (Time decay) Although anyone trading Vix derivatives and going long would have done well

Market Volatility

from    8.77- 11.36 ( last week  8.19 to 10.94 )  Looks spicy but it was not reflected in the options volatility curve.

News

The Trump circus produces more crazy stuff, but this fails to move markets- Oh Wait!!!! That was last week’s news.

AstraZeneca went nuts (it’s why we don’t like individual shares for our options trades)  https://www.cnbc.com/quotes/?symbol=AZN-GB

ETFs continue to dominate the chatter as they have done so well for retail investors. Low charges and thanks to QE a good return.Bad for traders…

Summary

Last week’s trade (Trade 40)- a long straddle- waiting until Friday made a nice profit – bought for 138 a sale at 172  +25% profit in 5 trading days- in fact intra day on Friday it may have got a bit more. I was not monitoring it closely. A better trader might have successfully placed  a limit order for 180….

I have seen FTSE stradles priced at 300- it happens

 

Filed Under: FeaturedInformative

About the Author: First found out about options in 1995.From the arcane magazine Exchange and Mart! First trade- a covered call on VOD in 1999. Made 10%,VOD almost doubled. That's when I realised I was not a good trader,and I was forgiven thanks to the amazing world of exchange traded options

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