The Week That Was 17th June

The Week’s Action

FTSE cash index-  7527 open 7463 close high 7545 low 7378  (last week 7547 open 7527 close high 7598.99 low 7449.73)

FTSE volatility- 9.86 open  9.96close  ( last week 10.83 open  9.85 close)

What Trades Would Have Done well?

Wednesday saw another feeble high- shorting this with long put spread strategies, selling call spread strategies worked very well (personally we made £££££)

Market Volatility

High12.1   low 7.68-not a suitable environment to sell premium in isolation

News

Grim non-market related news.

No interest rise as predicted but the B of E vote was interesting… QE stays at £400 billion give or take a few billion.

Summary

Trading nimbly, looking to trade volatility smart worked well. We don’t get 100 point+ moves every often.

We are now of course in the July expiry cycle, and Friday’s action was the usual BS- smashed up 40 points for the auction at 10:00am. The big players don’t want their puts exercised. It is market manipulation but it is ignored. Options are the tail that wag the dog.