That Was The Week- Expiring 20th July

 

Here’s One We Made Earlier

Trade 87  Buy1 (one) 7550 put paying 44 we are SELLING,  3 that’s three of the 7400 puts for 16.5 each= 49.5. A credit of 5.5 .The 7400 puts were 3.5, the 7550 was 19.(Closing prices Mon 16th July). Thus you could have made a cheeky 8.5+5.5 credit= 14. Margin would have been required of course-but as a short term trade, another nice win. Not claiming bragging rights, simply stating that the choice of trade is in no way due to my genius. I am very very far from genius.

So…. About That Week

Look at what happened- nothing. Alright a rise of 17 points,though Monday looked exciting for a few hours.The £ dropped against the dollar, but the dollar seems to be gaining strength due to the FED. Much as Trump dislikes the interest rate rises, he has no jurisdiction. I recall seeing many charts that correlate rising interest rates with rising markets. Others will tell you that high interest rates crash markets. I say not at 2-3% they don’t. The B of E rate is still a farce at 0.5%,punishing prudent savers.

Where Are We Headed?

https://www.thetechnicaltraders.com

I get helpful emails from these guys, and they predict good numbers for the US. We may follow suit, but frankly the political shenanigans of Brexit have not even given a glimmer of doom. We like doom! Doom thus creates volatility, and that gives us decent prices. Of course the pundits are there to sell you the market, money is of little use stuffed under the mattress.

Our Ethos and A Salutory Lesson

I have to stress time and again-we are here to educate and enlighten. We are NOT selling anything. All the links here are to free sites. This all pervasive fear of things financial is what makes you prey. Easy meat for the banksters who do not want you trading options and taking money from them. This made me smile:

Remember, therefore, if your IFA cannot explain options they are too ********** to trade your money.

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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