RSSAll Entries in the "Weekly Trade Idea" Category

Trade 75 With Market Moving Events Possible, We Limit Risk

  Felling Distinctly Uneasy About Global events Sorry but this is not a well thought out strategy. I have concerns that matters could get ugly very quickly in this coming week. Normally we’d be concerned as it is expiry week and there is PIN risk. This is just so flippant in the context of current […]

Trade 74 Something New and Experimental

Trade 74 Something New and Experimental

  Trade 74 Let’s try something                                                   What are we looking at? A strategy that might make some sense, or not. This is a first and I have to confess it’s […]

Trade73 Cheap and Cheerful

Trade73 Cheap and Cheerful

Trade 72- What’s the Story? Remember? Strangle at 7150 and 6300, credit of 39.5. Now the whole thing has gone a bit lopsided, what are the options (doh) for adjusting? The puts are now over 10% OTM so no worry there, the calls are close to the money at 100 points above so here’s how […]

Trade72 Volatility Spikes Don't Last

Trade72 Volatility Spikes Don’t Last

  Strangle- Naked, Mad, Bad and Dangerous to Know! Yes, a naked trade ! Normally we would never go naked but this is for demo purposes, and is a volatility play. As the VIX chart demonstrates we had a low base then a bump up to around 15,then big spikes up followed by big candles […]

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 […]

Trade70 -This Kills Me, But Maybe It's The Smart Move

Trade70 -This Kills Me, But Maybe It’s The Smart Move

The Trade Calculations, or Math – You Decide! The calculator courtesy of http://www.cboe.com/framed/IVolframed.aspxcontent=http%3a%2f%2fcboe.ivolatility.com%2fcalc%2findex.j%3fcontract%3dD846C3FB-A0CA-474C-8C95-635BAACF0084&sectionName=SEC_TRADING_TOOLS&title=CBOE%20-%20IVolatility%20Services Showing FTSE April 6900 Put @29 and &7350 Call@33.5 – so what’s the trade? Hold on to your horses here and let’s look at some key factors. Is The Market Headed Back Up? I don’t know where it’s going but one or two […]

Trade 69 Addressing Fear, Taking A View

Trade 69 Addressing Fear, Taking A View

Trade 69- Avoiding The Nasties I love the versatility of options -it’s like being able to buy/sell a stock today/next week/next month. And when we want to spend nothing or get a credit,the choices are huge. Can I say mahoosive? We look at the permutations in Trade 69.               […]

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 […]

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 […]

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. […]