RSSAll Entries in the "Weekly Trade Idea" Category

Trade 59 Low Volatility, But A Blip Up  On Friday- There's Hope...

Trade 59 Low Volatility, But A Blip Up On Friday- There’s Hope…

What is going on? As the FTSE versus £  chart shows there is little correlation with the £ and the FTSE. We have been in a 500 point range all year,with support at 7100 and resistance at 7600. Now that 7600 is one stubborn beast-multiple attempts at it but no further advance. What can this mean? Who […]

Trade 58 Time and Relative Value

Trade 58 Time and Relative Value

How The Trade  Looks:  Courtesy of OptionCreator © 2015–2017 Why The Graphic First? As options traders we  always always look at where the trade risk is. Reward is an unknown. Many traders talk about risk/reward on the assumption they will win trades. Statistically it is highly likely that anyone trading directionally will have a run […]

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 56 Unashamedly Directional

Trade 56 Unashamedly Directional

The Now- Familiar Chain                                                 Reading this should have become second nature, if you have been following us. Which of course you have, as you favour education over gambling. Although I was […]

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 […]

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 […]

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 […]

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 […]