That Was The Week 2% Drop- Hint of Things To Come?
FTSE (still at a fantasy P/E of 22). Tuesday’s drop was soon mostly recovered though we have a lower high. However we have dipped toes into the 6850s. Chartists might tell us we are on the right shoulder of a ‘head and shoulders’ formation, and diminishing low volumes. Regulars here know I hate markets that are kept high-it never goes well. I don’t wish for disaster but if we’d had sensible levels at the outset of Covid, we would not have had the most insane plummet ever. New information is of course,never easy to process. Panic is never the right option. Our regulators are absent in a crisis, it seems, but endorse pumping up the market when it’s high. Like a doctor who only treats well people! Allegedly.
In Other News
Joe Biden seems to be chasing those elusive taxes but we know corporations will dodge any kind of taxation where possible. Quite why this would affect markets is laughable. The media must be grateful for such news, in order to sensationalise, and look almost credible! Ooh, such cynicism, I hear you say. Meanwhile Space-X has another succcessful mission to ISS. Good people doing great things.
Distraction Trades and- Guess What Happened to DOGE
This idiot as you will remember missd out at GBX 0.038 -it hit 30 and now licking its wounds!
Dax? Well a couple of good trades -the drop gave us over 150 points, which compensates for the inactivity recently, we continue to monitor.
Those Legacy Trades and 217 a Revisit
Trade 216 Risk/Reward is Now A poor Prospect
(Apr 16th) We are going to do something we have not done before- legging in/ adjusting in ‘real time’ at least looking for opportunities in each trading session.
Our starting position is a long straddle: 7050 call 65.5, 7050 put 129.5.
So, as I have said many times I’m a terrible trader but we reserve the right to review things as we go along. However,most weeks I can ‘see’ a trade but this week- nada, zip zero nil pointes. Buckle up. It may get bumpy.
19/20 Apr
It got bumpy but we locked in a great profit- and hopefully you have seen the comments section in real time: So- as promised we leg in by selling 2x 7150 calls at 36 =72
we buy 1×6850 put at 48= 48
then we sell 2×6950 puts at 91=182(market has dropped but only 40 points)
We now have a put butterfly and a call ratio spread,
and a small credit of 206-195= 11.
We use that to roll up 1 short 7150 call to 7200. Thus our risk is out further to 7300
As of 23 Apr settlement the put butterfly = 19.5, The call ladder 13.5. We can run this for fun,too
217 If You can’t be Original….
When it make no sense to do something exotic we sell a 6650 put 31.5 and a call spread 7000 52.5, 7050 35
This is of course a Jade Lizard*, selling the call spread and a put to give us ±50 credit.( ok it’s 49) Enjoy.
*https://www.tastytrade.com/definitions/jade-lizard
