RSSAuthor Archive for Terrapin Trader

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

Trade 68, The Bleak Prospects,Taking a View

Trade 68, The Bleak Prospects,Taking a View

  The Bleak Picture…………(actually it’s 2010) The bigger picture? Well, we are talking about options Trade 68, I jest about the snow. Resistance for FTSE? 7450. And support? 7100– in my view. VIX is still a bit spicy, VFTSE not so much-what do we make of this? Not a great time to buy or sell, but as always we […]

That Was the Week Ending 23Feb

That Was the Week Ending 23Feb

  The Week’s Action A 100 point range all week and some downside, losing about 1%. Low volumes, which may mean a bit of a breather-or indecision as it’s better known. The bigger picture? Central banks and inflation seem to be the prime culprits for the uppy downy stuff. Where Are We, Where are the […]

Trade 67- Where To Now, Sherlock?

Trade 67- Where To Now, Sherlock?

Reading The Signs, Finding the Trade Here’s a naked chart of FTSE. So what can we read into it? But before that- are there are skeptics out there who dislike charts? I railed against their use for years as I’m not good with visuals, and prefer numbers. To say I failed at art at school […]

That Was the Week Ending 16Feb

That Was the Week Ending 16Feb

  With Thanks To Stock Twits This what happens when you short VIX. This is what happens when you trade a strategy: Margin increase from 16% of account to 50% of account. Trade went £2k per lot underwater. Don’t panic !!!!!! VIX spikes are temporary, and we can adjust. Outcome: Trade profitable £300 per lot.Unnecessary adjustment cost […]

Trade 66 The Return of Crazy Vol or Realistic Pricing

Trade 66 The Return of Crazy Vol or Realistic Pricing

   The Greeks and the Chain Here’s the ‘skinny’ and a trade for the bullish,the bearish,the don’t knows(me). We are  buyers of the 6400 put and sellers of twice as many 6200 puts. We are thus rewarded with a credit of 20. You need to know firstly, where’s the risk? FTSE falls below 6000 in March. […]

That Was The 2nd EEEEk that was 09February

That Was The 2nd EEEEk that was 09February

Here’s What Happened 7443 down to 7092– a drop of 4.7%. VFTSE effectively doubled. So,margin increased 3 to 5 fold. Nobody rejoices in this-even those who doubtless have made a fortune. Such huge moves, even greater in the US and reflected in Futures trades, are ugly events. How Are We Doing? Well our last 2 trades […]

Trade 65 Sell The Farm!

Trade 65 Sell The Farm!

Technical Analysis- Does It Work-and Trade 65 I  annotated the above chart,to show the signals that for my set up, indicated a drop. Of course I ignored the chart, signals that clear don’t work, do they? And now? Clear as mud, and overbought conditions did remain for months. I believe we have a new market […]

That Was the Eeeeek Ending 02February

That Was the Eeeeek Ending 02February

What The Heck? Who pulled the plug? This is classic-the trader cannot update beliefs about the market. Call it torpor,whatever but this is the first dip and it’s a year overdue. Should we feel out of touch? Yes, in a nutshell,we have been asleep at the wheel. Personally I was long a call strategy, but also have […]

Trade 64 Double Trouble Theta Creator

Trade 64 Double Trouble Theta Creator

Trade 64 A Bit of a Frankenstein. Our offering this week  is the sale of 2 near month puts while buying a wide put spread in the next month. A ratio calendar, with an extra short put. Here Come The Greeks- The Two We are Focussed On, Delta & Theta 7350/7150 Mar put spread 35-18= 17. We […]

That Was The Week Ending 26th January

That Was The Week Ending 26th January

Here’s What the Week Looked Like To Us. A Drop! More Than 1%! Well, it fizzled out and volatility had a tiny blip which did nought for options prices. This kind of move makes traders believe it might be the start of a bigger slide. We just see forlorn looking options prices-though selling certain options […]