Discussion Forum

This trader could have made serious coin but otherwise distracted on Friday.This is why we use LIMIT ORDERS when we are busy!

This has made a tiny profit to date but we run calendar trades to expiry where possible to use up all the time value

easily made 30- super nice trade

A really strange time as volatility is 50% lower than ‘normal’

https://uk.reuters.com/article/uk-britain-stocks/ftse-rises-as-sterlings-decline-boosts-exporters-idUKKBN1DD168
This is the kind of garbage trotted out by the respected institutions- sorry but I think it is nonsense-the market will do whatever it wants to -it’s just a market

Exactly..still time for it to make money!

trade 55 still has a week to run of course…..

the good news keeps coming as QE tested the debt waters and they found it was goooood- no repercussions for the top 1%, the other 99% are JAMs- Just About Managing and so will not upset the status quo. Politically I am not aligned to anyone but in my heart I’m socialist

So now we have the Dec 7400 put at 51 and the Nov 7400 put= 18(x2)= 36. therefore this is a very nice profit having paid 3, you could close out for 15. Of course this needed some margin so it’s not a simple 400% but probbably more like 10% in 4 days. Once a month -that’s a big healthy profit-better than your ISA at 1.2%

Apologies for any previous errors-hope this trade sparks the imagination

Apologies- I got the numbers wrong for Trade 53- it was a genuine credit of 12 to close

Missing trading opportunities is almost unforgiveable- I was seriously otherwise engaged in a noble cause so what’s a grand or so amongst friends?

Actually the puts must have hit well over 40 on Wednesday so this could be a win-you’d just have sold the put and let the call run- 8.5 on Friday,so 48.5 on 39 is a nice return, though unintended! And they tell you options are risky!

Earlier today- the trade hit 12 (30, and 14×3) as vol picked up a bit-we can book this as a winner methinks-sorry I missed a chance to screenshot

https://seekingalpha.com/article/4115801-can-hold-market-long?auth_param=1e747s:1cuup15:80f7e266c45fd1b3b4c23af299dfbb0e&uprof=44&dr=1

The F has gone absolutely nowhere for well over a month now-this is like nothing I have seen -but perhaps my memory fails me. Stand by for some earth shattering event-something has to give….or does it?

It made a modest profit and even doing nothing was an option(excuse the pun).

The strangle is losing money already- the market has stopped being a market so we might take a 50% loss on this. I am no longer able to assess market conditions as none exist in the proper sense.

I would not expect this trade to do very much but any big move would see it make a healthy profit. Now most of the hedge funds have shut up shop as there are no more dips. We just have long only funds pounding the index higher day after day-while real earnings are almost mythical, inflation- predicated on wage increases is nothing. Debt is more than it was in 2008- both government and personal -any return to realistic interest rates will kill the global economy faster than you can say “Despot”

close of play on friday the 7650 call= 4.5 and 7350 put =3.5- this was really not a trade to sit on. However- next week may be fun as it’s the 30th anniversary of the ’87 crash-which means nothing other than so many traders have never known a serious market event-the heavy bias to the long side rest solely on free money-and sometimes the money tree hits a lean spot

curiously this trade could be closed out for a credit of 2.5 after getting a credit to open it. You’d need a hefty account to make this pay though.

Interesting percentage chart!

Same here…short like crazy!

I’m short this market but low volatility makes is too horrible to sell anything with downside risk as vol WILL explode at some point

I don’t have the numbers with me but …this trade bought for 19, was a close today at 35.
that’s 84% profit in old money, and the trade is still young. This is where you could close out part/ some, or all of the trade-the permutations are many.

Not sure how this will go,and maybe it’s all a bit hurried as time has not been on my side lately- that is by choice, there is life outside the markets.
I was told about this at a trading seminar courtesy of London Trading Group: ‘only 1% of people offering trading course in the US had a track record’. We have a track record you can see for yourself-we are free and offer nothing but a passion for options.

Sorry a financial crisis is not funny but Ed Balls certainly is! Amazing how failed politicians who have cost their nations so much have the temerity to carry on. Imagine we’d traded the country’s gold reserves and lost the lot,…. oh wait

It looks like the market is going nowhere so one choice with this trade which is now losing money, is to swap around and convert it into a regular ratio back spread. How? I hear you ask. We have to buy back the short put- 7250 currently trading for 42.5, and sell 4(four) 7050 puts at 4×14= 56.A credit of 13.5.We have doubled our trade size but margin is unlikely to be an issue. So we are now long at 7150 x2, short at 7050×4, which gives us risk at 6950. This is 350 points below the market, which is almost 5%. Nothing seems to phase this market, from war to crises to valuations. Everything is a bubble now.
Another choice might be to double up on this trade which is now worth about 3. We paid 7.5 initially so if we doubled our stake our aggregate prices is now (7.5+3)/2=5.25.
But which is best????

Sometimes we have to take debit trades, as the reverse of this trade would make no sense.

The market continues to frustrate, to delight, to give us hours of musings. It’s important not to lose sight of what it is- a bunch of opinions. Nothing more. HSBC is the biggest component by marketcap of FTSE-how many failed loan accounts are on its books? Nobody knows.

[…] Previous week’s Trade 47– sold a put to buy a call butterfly – closed out early for profit 17.http://optionsinvesting.co.uk/trade-47-3rd-friday-month/ […]

Another way to summarise- to open the trade was a credit of 1 and to close it (12-4) a credit of 8. Happy days

The butterfly is now 12,( paid 7,sold that cheeky 6600 put for 8= credit of 1) but with that short put trading at 4, we make 5 from the butterfly and 4 from the put=9. Or… a very very respectable return of£90 on margin of probably <£1,000. I think we can book a winner but the 'fly can run to expiry to claim that max 100. We'll keep an eye on it

I’ll run with a CALL debit spread, with volatility being so low! If it goes wrong, there is an option to repair by adding a ratio and converting it to a butterfly.

We have had a decent drop of 2.5% but still there is no fear, so like you suggested it is probably pure £ adjustment.

at expiry this made 53.5. We could keep the long spread or just close out leaving us free to trade something else. No problem having multiple positions though,and optimising your margin.

ANOTHER WINNER- A VERY ACCEPTABLE 17 FOR THE BUTTERFLY MINUS 3 FOR THE SHORT PUTS GIVES YOU A PROFIT OF 14 IN 2 HOURS OF MARKET ACTION. YOU’D HAVE TO BE MAD TO IGNORE OPTIONS-AFTER ALL THE MARKET HAS NO IDEA WHERE IT’S GOING,SO HOW CAN ANYONE ELSE?
THOSE PRICES -LONG 7400CALL AT 42, SHORT 2X 7450 CALLS AT 14.5, LONG THE 7500CALL AT 4= 17(MINUS 3 FOR THE SHORT 7200 PUT)=14.
THAT IS £140 PER LOT ON MARGIN OF SAY £1,000. SO A 10 LOT WOULD GIVE YOU £1,400. ONE OF THESE EACH EXPIRY WOULD DO, LEAVING YOU 3 OTHER TRADES FOR THE MONTH. FOREX? THOSE GUYS ARE STILL CRYING ABOUT THE ONE THEY MISSED

Again a trade I’m not over the Moon about but we have to take a position,and if it goes horribly wrong,we’ll fix it.

I took the trade- selling naked 7550 calls but do NOT recommend this for everyone. I have a small losing position in puts that may be turned around- N Korea seems to do the mad stuff at weekends

To add I would say only form of investing where we could insure our investments..unlike property or pure value investing in shares.

hope the calcualtions are clear enough for people to understand- I have done the end result based on the logic of owning the 7300,then short the 7200 and the 3 sept 7000 puts-I have thus sold a total of 4 puts for every one that I bought. Any mistakes in the calcs are due to ineptitude

Sorry but that looks like a bunch of dustbins strapped together-missile? Big is not better

Super trade!!! Did someone just make $$$..please share the love 🙂

[…] We have shown over the last 40 + trades, how, with a modest understanding of options strategies you can generate great returns. From ups AND downs. We  demonstrate how we comfortably limit risk. http://optionsinvesting.co.uk/basics-revisited-take-time-change-world/ […]

If anyone is curious about the chart and the way the price respects the longer moving average after the golden cross. It’s the magical 62. Remember 61.8 is the big Fibonacci number-the Golden Ratio……. Just sayin’ This is not a tip or even a hint, it’s coincidental as I usually work off a 5 minute chart and this is a 30 minute

Trying to draw attention to the power of options trading has often got me into trouble with the cynics and the blinkered, who are sure everyone is out to scam them.
Pensioners are scammed in so many ways- the fitted kitchen and bathroom trade spring to mind, as so many pay thousands for substandard work. Preying on the ‘well off’ older folk is rich pickings-as care homes charge £5,000 a month for very little, in my opinion.
Yes this is a mission to educate, and wake up the somnambulant. Perhaps when people see how options work they will start to challenge and question in other areas of their lives too.
We hope the knock on effects of optionsinvesting.co.uk are to the good of our subscribers.Options are NOT for everyone but financial ignorance is not an option in our world. If your IFA cannot explain options,how can they be fit to sell some off the shelf product?

Of course the market can go below 6550- let’s see,and if it does the volatility will give us plenty of juice to adjust/ roll out. This is what we hope for,to show the flexibility of options in the exit as well as the entry. and it is of course no problem to ‘leg in’ and out of any part of the position.

Another rant about ETFs which may be great for retail investors but they flatten market moves,and fail to engage.
Much is made of algo trading-most NYSE stock trades are electronic. Black boxes work, like drum machines work- but we still like to see drummers. Although a black box turns up to work on time and sober and doesn’t try to chat up other people’s partners! I think we’ll see some volatility next week-just sayin’……..that’s not advice, probably wishful thinking

To close? Nah it’s flat- a curious week and Trump antics continue apace- I see a bit of a Trump dump next week so I have no positions currently. Expiry was just ..7320, untypical as there is nearly always a rise for the auction at 10

Well-early days but the trade has done very little and again vol has been sucked out of the market- no easy trading here,we need to be patient.

Pretty much this what I did for this month..worked wonders!!