221 W/e 28May A Strangler’s Dream

That Was The Week FTSE Went Nowhere

So, it was a ‘strangler’s paradise’ this week as theta and decreasing vol eroded those sold premiums. Following last week’s ‘wet finger in the wind’ analysis- 38 Fridays when vol shrank -out of 48. So, a strangle placed on Thursday 20th: 7200 call (27.5) and 6700 put(39) is now 14+17. However this is not to advocate this strategy, but an observation of what happens in a moribund week. Would we have placed this trade on Thursday 27th? Clearly not. And, did we have any idea this week would have been so flat? Certainly not- we could have seen the overthrow of Bojo and chums after Cummings’ epic reveal. If you need help with your online shopping experience, there are experts like for example Cleveland SEO to help with various channels

Further to the vol question, here’s a link from our chums at CME: https://mail.aol.com/webmail-std/en-gb/suite?ac=f&rt=st&r=930

Distraction Trades

DAX– A winner a loser, a break even and yet the rationale for the trade is unscientific. Who knows?

And so to DOGE….

This idiot is still sidelined but now have an account that is policed by the mostly bewildering FCA. I cannot vouch for this platform but I was at least easily able to open and fund an account with  eToro. Some curious features but quite friendly for one who has long since tired of bells and whistles on trading platforms. Naturally you do not need to fund an account as you can experiment with a virtual portfolio. Free education? That is welcome.

On a sidenote, products seem to be priced in US$ so if I buy any DOGE I can do this in random amounts of the coin, or in US$. Betting the mortgage on a crypto is not recommended, but it’s fun with a few quid you can afford.

I thought this was an interesting watch as it exposed the avarice of wannabe traders. NB: Not our people: https://www.bbc.co.uk/programmes/p09hbsct

We are the polar opposite of this scam. We educate and will never ask for money. You,however, are welcome to vent anger, or praise at us! In fact we’d be happy to address any comments.

Legacy Trade and 221, What to do in Low Vol Environment

220 A New Expiry-June

Open Interest Anomoly Trade -this is fun. The OI for puts is greatest at 6200, and for calls 7300. So,let’s go long both sides and SELL at these strikes ( 12, 9.5) and BUY nearer the money, at 6400(18) and 7225 (21.5). We are creating a short iron something. (Sloppy condor?) Thus we are buying these unlikely looking spreads.

So, our debit 18 -that is our max risk. The point of this trade is that it can be morphed into something way more interesting

And this- fun link to P&L chart  https://optioncreator.com/stu4d4d

This week- eeeeew! Ugly.  Now we see  6200, 6400 puts and 7225,7300 calls  valued at  6.5-3.5= 3  and 10.5-4= 6.5. We have lost almost 50% of our outlay.  LOSER    We await a better opportunity to morph into something, and note that this last week has been grim for active traders.

221 A Biiig Crazy Ratio Calendar

We didn’t fancy anything much in this environment as everything seems to be in the ugly spot. This trade is a reverse calendar for one simple reason, it seems highly unlikely to be risky. We’d need to trade out of this before expiry, however. We are selling 1xJuly 6600 put and buying 4(four) June 6600 puts. Options geeks will note- theta is ugly, delta is not so great, and there’s more: Gamma is not so fab and even vega is a bit ugly. However we have the power of 4 and a small debit of 7.5 This is a new one for us and may not go well!

Caveat: We learn by our failures not our successes and we continue to have a silly amount of winners. Our remit remains, to educate