That Was The Week Ending 13 April

 

 

Catch Up on Previous Trades.

 

Trade 74– weird and profitable. Remember it was a 2×3 selling the far month straddle twice and buying the near month 7175 straddle thrice. Credit of 80, now 107.5 x3, 194.5×2= 66.5 to close. So we have  a profit of 13.5. I am not even sure of the mechanics of this-there is much more work to be done.

Trade 73(winner for 20 last week)  Smashed it out of the park- now 3×6 for the 7350 calls, but the 7200 call is worth a stonking 75. Thus a credit of 57-4 paid to enter the trade= 53 out of a possible max 100. Exit again is everything.

Crazy Week? The Opposite.

From Tuesday the market had no idea where to go and flatlined around 7250. Other markets may have performed differently. Dax always looks like an athlete on steroids to me! With weeks like these we are happy to be burning theta, having sold more options than we bought. Our long options are there to make money too, and we own them on the cheap,so it’s a doubly wammy with most of our trades. This is our guiding principle and one that few people grasp. It has cost me many hours of angst to arrive at this conclusion, and many variable trades. My losses on this path are your free education. I paid that price happily, and as traders we always have to go our own route. Like the wet paint sign we cannot resist touching. It’s nearly always wet, but we are more curious than smart.

The Week Ahead

This may be the most momentous week in modern times,and I do not wish to be flippant. So, I will post a trade, and we will always try to be brutally honest. This site is not about bragging rights,it has always been about education. We want to reach out to the minority who look past the smoke and mirrors of the managed funds, the cash ISAs and other financial products that may harm your wealth. Comment,challenge us, ASK!

 

Filed Under: InformativeStrategies

About the Author: First found out about options in 1995.From the arcane magazine Exchange and Mart! First trade- a covered call on VOD in 1999. Made 10%,VOD almost doubled. That's when I realised I was not a good trader,and I was forgiven thanks to the amazing world of exchange traded options

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