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Trade 57 Avoiding Losses, Exits Mean......... Everything

Trade 57 Avoiding Losses, Exits Mean……… Everything

Cutting To The Chase It’s a ratio calendar strangle and it looks like this: Trade 57  Nuts and Bolts-Let’s Speak Greeks The best offer and it’s not flippin’ Black Friday! We have done the maths and while the graph looks pretty darn good….. How’s things in the back office? Delta: 0.111 against, Gamma: 28 against, […]

Trade 55 This Trade Gives You Wings

Trade 55 This Trade Gives You Wings

 Looks a Bit Dull, This Week’s Trade …. On the left, the left hand column of the FTSE Nov. options chain. What lives on the left?     CALLS        What ARE those numbers? Left to Right: Open Interest- – the number of existing positions at that strike e.g. 17828 at 7600 Next column in- last […]

Trade 54 Ratio Calendar Spread For Early Xmas

Trade 54 Ratio Calendar Spread For Early Xmas

The Position: This trade, we are selling two of the Nov 7400 puts and buying one of the Dec 7400 puts. For a debit(cost) of….3 The Greeks Those calculations made flesh! Delta 0.2005 (0.2693×2-0.3381) Gamma 24(19×2-14) Theta 1.8823( 1.4478×2-1.0133 Vega:1.6529 (5.8016×2-  9.9503) The Wisdom of The Trade: We are not giving away much in terms […]

That was The Week ending 27th Oct

That was The Week ending 27th Oct

FTSE This Week  – DOWN!  :  Monday- Friday  Tiny Loss 18 .  One down day does not a bear market make Daily Volatility:11.895-9.43  from 11 – 9.13 slightly larger range again,and still about 50% lower than ‘ normal ‘ FTSE cash index – open 7523  high 7542 low 7437 close 7505 FTSE volatility-   9.8-10.26   (last week: open 9.13 close 9.8)  What Trades Would Have Done well TRADE 53  This […]

Trade 53 Armageddon Notwithstanding, and a Triple Twist

Trade 53 Armageddon Notwithstanding, and a Triple Twist

Everybody loves a disaster People like a scare-so long as it is controlled and someone else’s problem. That may be too harsh an indictment of humanity. I apologise for using such vulgarity to illustrate a point. It seems to me there is always a ghoulish side to us, and the news media panders to this. […]

Trade 52 Playing Not To Lose

Trade 52 Playing Not To Lose

Storm of ’87, crash of ’87? Trade of the Year? We anticipate a severe storm this coming week and curiously it’s the 30th anniversary of the great storm of ‘87. This week will also be the great crash anniversary of course. Coincidence? Could it happen again? http://www.bbc.co.uk/news/uk-41620071 Famous Quotations 1.”When the tide goes out we see […]

That was The Week Ending 13th Oct

That was The Week Ending 13th Oct

FTSE:  This Week  – UP :  Monday- Friday  16 points rise-that’s 4 up weeks. Last week’s was about 2%. One comment really-we no longer have a market just long only ETFs Daily Volatility: 11 – 9.13    from 10.8 – 9.273 tiny range again-and the 11 is a split second peak at 9 on Wednesday FTSE cash index – open 7519 high7565 low 7522 close 7535  […]

Trade 51  I Don't Believe It! UP, UP and Overvalued.

Trade 51 I Don’t Believe It! UP, UP and Overvalued.

Trade 50- Another Winner We made serious coin, buying the straddle, selling the strangles for 19. Closed out for 35. It’s rarely that simple but when it is, we have to grab the money and sit tight. Until the next opportunity. We are not married to the trade and we are seriously indifferent to the […]

That Was the Week Ending 06 October

That Was the Week Ending 06 October

FTSE:  This Week  – UP :  Monday- Friday  151 point straight rise every day-that’s 3 up weeks, 8 up days on the trot (one was flat but not down) Daily Volatility: 10.8-9.273   from 11.4-9.8 FTSE cash index – open 7372 high7528 low 7372 close 7523   FTSE volatility-  10.4- 9.98   (last week: open 10.4 close 10.4)  What Trades Would Have Done well TRADE 50! […]

Wow! Trade 50- A Milestone, or a Millstone?

Wow! Trade 50- A Milestone, or a Millstone?

                                Trade 50 A Little Bit Out There And a little less in the middle. I’ll cut straight to the chase here and try to explain the logic of this trade. We are buying a straddle– in this case the […]