That Was The Week FTSE Carried on Regardless
The economy, government debt, business closures, no problem, the Stockmarket is not the same beast it was a decade ago. Meme stocks in the US are ramped to the Moon, and mostly those companies end up as a dumpster fire, in American parlance. Looking at P/E ratios of major markets https://worldperatio.com/area/united-kingdom/#google_vignette We can see the bargain, is surely China, but they do not let the West invest other than through ETFs. So while many FTSE stocks trade globally, the impending tax hikes must surely be a deterrent to those wishing to buy at an all time high. Just my view but trading has become very difficult when you don’t run with the bull herd. It’s not easy being wrong, having traded( indifferently) for over 25 years. My own fault. Dogma costs money!
Perhaps not the best use of one’s time but trawling through the BBC‘s weekly business news, it goes from gloom to gloom, to the hilarity of Trump looking an idiot with FED chairman Jerome Powell. Trump alone is reason to believe the world is going to hell, surely? However yours truly was reminded that there are the disparate worlds. Politics, the real world, the economy and the Stockmarket. Feelings have no place when trying to assess trading possibilities. The Stockmarket has its own micro climate, even as the planet has a climate emergency.
In The Inbox
So this was a cheery invitation to someone new should listen to: https://youtu.be/7nFjaL1GudQ?si=sr-u-2YBXAkHk8yU
Goldman Sachs AKA the vampire squid have a brutal reputation, but hard nosed as they may be they bring home the goods.
There’s a link to GS and you can subscribe for free: https://www.goldmansachs.com/briefings
And another webinar here: https://track.moneyshow.com/vm2/c040de51e48855d33947229f28c3afba/25436/838d8f6bd426b72361d243c6cec3b068/25436 .
As always it’s free and you can cherry pick from the content. Learning never stops.
Finally in the Inbox- what’s wrong* with this picture?
This blog started as a beacon of truth, not cherry picking, just showing trades, warts and all using actual prices in real time. We do not duck or obfuscate. We show the beauty, and power of options trading that has given this idiot a way of life for many years. All knowledge and experience has been gained (or lost) in real time.
*What’s wrong with this picture? Is anyone seriously going to check trades from a year ago?
Distraction Trades
ADA was $0.8237 now $0.8185
XRP was $3.4105 now $3.1897 A small drop for our chosen Cryptos yet again.
DAX : 2 days no trades, 3 wins +300. Some scrappy entries not taken.
UK Gilts Were £15.80 now £15.85 This is based on the Vanguard ETF, not a lot of love, though of course price goes down, yield goes up. Hard to know if Gilts are worth having. But interest rates may have to drop once inflation is out of the system and job losses mount. Gilts should then rise.
Legacy Trade 424 (was 415b)
Trade 424 High Risk Big Reward
We will roll Trade 415/415b but also instigate a new trade which is long August 8450call short 2 x 8650 call. Those prices: 531 and 342, so as a new trade there’s a CREDIT of 684-531= 153. As a legacy trade there is a small credit 34.5. This as you can see, is deep in the money with risk at 8850 This may be a struggle but what if we can roll, for a credit ad infinitum?
Now 8450 call 652 8650 calls 456.5 x2 Gives us: 913-653= minus 260 We are running this, remember but it’s not pretty right now!
Trade 425 Can We Keep Seeing High Prices?
So my Spidey sense are not working. But we need to have something that might reward us in the unlikely event the market might be allowed to drop! Let’s give a spicy 3×1 another chance. We use August options, and sell 3 puts for every 1 that we buy. Here the 9000 put is 48, the 8750 put is 15. Gives us 48- 15(x3) = debit 3. Risk, then at 8640 ish.
We own a .30 delta and have sold 3x.10 deltas. Gamma? 14, and 6(x3) Volatility is appalling!
For those new to options:
https://optionsinvesting.co.uk/special-edition-how-options-work-1/
https://optionsinvesting.co.uk/special-edition-how-options-work-2/
https://optionsinvesting.co.uk/how-options-work-page-3/
Contact: surreyhantstraders@gmail.com. If there is anything you’d like help with, we all started somewhere and yes, it can be baffling. There are no stupid questions
All opinions expressed here are not to be taken too seriously and all of the trades are for educational purposes only.