Xmas Week- We’ll Be Back With Trade 162

Impeachment, Election, Global Environmental Issues New Governor at B of E,Interest Rates -All This Week- Phew!

(Eu)phoria- see what I did there? I believe we had a big old bump out of boredom. Politics- we’re all worn out. Interest rate? No change, yet again. The planet? Hard to process the immensity of ongoing disasters, deeply saddening fires, melting ice caps, disappearing glaciers. Hard to get your head around, and horrible of course for those affected. Even more- retail seems to be struggling, and Brexit is an unknown.

Thus holes have been burned in those deep pockets. (Some may not know the old expression about money burning a hole in your pocket- meaning you simply cannot stop spending)

So,  what’s cheering people up? Oh wait….. an avuncular figure in red robe (thanks to CocaCola) distributing good cheer.

It’d be churlish to trade this week, but it’s maybe a good time to remind people of some of our valued educators:

http://stockcharts.com/freecharts/marketsummary.html?E   Free charts

http://www.forexfactory.com/calendar.php      Giving you a calendar of market moving events- free

http://io9.gizmodo.com/5974468/the-most-common-cognitive-biases-that-prevent-you-from-being-rational  Be afraid!

https://www.macroaxis.com/invest/market/^FTSE–volatility–FTSE-100  Pinch of salt required but interesting

http://data.theice.com/MyAccount/Login.aspx?ReturnUrl=%2fViewData%2fEndOfDay%2fLdnOptions.aspx UK Option prices- use the dropdown to scroll through the equities to FTSE

http://www.21stcenturyinvestoreducation.com/page/tce/courses/course-201/?sid=6236057324.13220045  No better education than this -and it’s free. So,  everyone should do this.

http://www.optionseducation.org/en.html Gentle stuff from  options industry council-it may be a little basic for some.

Therefore- we need to use our down time, given such rich content. So dig in, challenge yourself, and us!


The Legacy Trades: Just This….

Trade 161- How it Went Down, Given The Crazy Week’s Events

We sold 2x Dec 7200 puts, and bought 1xJan 7100 put.

So, the cost? 34.5 -(13.5×2)= 7.5.

And today?…………………………………….. The 7100 Jan put is worth 8!

Well it’s not a loser- but can we morph this into something else? We could sell 2×7000 puts at 6×2=12. Thus we’d now have a credit of 4! We could have a butterfly 7200/7150/7100, giving a free trade. So we sell the two 7150 puts and buy the 7200 put.(9.5×2)-11= 8


One more thing….. Happy Christmas to our elite band of followers and traders.





Filed Under: FeaturedInformativeLearnStrategiesWeekly Trade Idea

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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