That Was The Week Ending 19 January

The New Year and The First Expiry

The lack of serious action has been causing us grief for 12 months or more. The ‘expiry guess’ was better than I could have hoped for with TRADE 62 being a close out the day before. We don’t like PIN risk. That is what it’s called when you  run trades to expiry. FTSE is cash settled at £10 a point of course, but the auction to determine expiry price can be a bit wild. This takes place at 10:00 am for the next 10 minutes. I tend to think the index gets bumped up to save the put sellers. That may be purely my imagination.

Making Progess on The Trading Journey

We hope our readers are inspired by what we do. The occasonal feedback tells us we are on the right track. But…… we want to try some new things. We want to start a poll of trades offering for example 3 possible and reasonable looking trades. We then count the votes, or comments as some people may wish to express their reasoning. Then, await the outcomes.  Options traders are by definition, looking for smarter ways to put capital to work. The only fixed points are entry prices and expiry dates. All else is fluid.

2018- Politicians and Bankers

It seems to be a cosy set up right now with banks hitting the sweet spot with the political class. The new year may, however be a change from the smug complacency of the markets that so cheerfully ignore the debt pile.  Not just corporate debt -which is ok if you are making money, but household debt is now worse than 2008. While interest rates remain low it’s manageable. What about jobs though? Does anyone seriously think coal mining is a good idea? A fun way to make living? Fantasy politics fake news- bring it! We can trade  the crazy!

 

 

Filed Under: FeaturedInformative

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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