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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 […]

That Was The Week Ending 20April

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 13 April

That Was The Week Ending 13 April

    Catch Up on Previous Trades.   Trade 74– weird and profitable. Remember it was a 2×3 selling the far month straddle twice and buying the near month 7175 straddle thrice. Credit of 80, now 107.5 x3, 194.5×2= 66.5 to close. So we have  a profit of 13.5. I am not even sure of […]

Naked -Not So Much Fun- Trade 72 Special

Naked -Not So Much Fun- Trade 72 Special

 This Was The Trade: SELL the 7150 call  @19.5 (230 OTM) and SELL the 6300 put @20 (620 points OTM). Credit 39.5. Risk at 7190 and 6260 FTSE was 6920 on March 23rd- now it is 7264. OUCH! FTSE has risen  5% since 23rd March. Why? Too much money chasing a home? Or this:       […]

That Was The Week Ending 06April

That Was The Week Ending 06April

Some Housekeeping First: Trade 73 Another Victory For the record- Trade72 would still be underwater if we’d run as a straight strangle but next week might see some big downside. So our short 7150 calls will likely be a bit less juicy,and in our favour. Last week we ran through some adjustments,and we don’t have […]

That Was The Week ending 30March

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 23March

That Was The Week ending 23March

Volatility rising as the market drops 23Mar2018 ICYMI Trade 70- Not For the Faint hearted Our trade would have been a disaster if we’d hung on. I did claim ‘author’s rights‘ as we aim to educate and I have not been around to record historic prices- apologies. You would have smashed it had you sold […]

Trade 71 Xmas Festivities? - It's The snow

Trade 71 Xmas Festivities? – It’s The snow

Something a Bit Left Field But Not Too Crazy We always want to educate and entertain- in that order. So this week’s offering is something a little unusual in the size of the legs,and this trade has 4 legs. Sounds like a bit of a Frankenstein but it can be called a Christmas tree,as pictorially […]

That Was The Week Ending 16th March

That Was The Week Ending 16th March

                                                                                                              […]

That Was the Week Ending 09March

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 […]