That Was The Week A.I Got Booted Crypto Got Snatched
Crypto lives in the blockchain. Crypto is intrinsically safe. I have, in the past explained that I wanted to buy Bitcoin when it was $11. However, I could find no safe way to buy it. Wallets they said, but which one, I asked? My tech knowledge is analogue in a digital world. However this guy has some accounting smarts that explain the A.I. frenzy. https://www.youtube.com/@SashaYanshin
As I understand it the basics of business are: find a market, find a product for that market. I asked A.I. Gemini confidently told me everyone needs A.I. It can generate ‘growth’ as apparently that is what we need.I question the wisdom of A.I in commerce and Google’s advertisers have come to the same conclusion. Ask A.I which is the best product and it may well eliminate all competition. So, with no competition profiteering is the game. Oversimplified, but the world is not a homogeneous mass. Constantly pushing products that we showed a mild interest in can have the opposite of the desired effect. I’m a contrarian.So are millions of others. Back to the knitting!
In The Inbox
The esteemed Mauldin economics gave us their wisdom : https://www.mauldineconomics.com/the-world-isnt-ending/black-october?ajs_uid=cio_88b50d048e37cfe007
I feel out of touch personally but feel a human backlash against the far right is underway. Perhaps the backlash to A.I. will be more than we expect. A lot of jobs will go, remember.
Dear old Larry: https://mailchi.mp/optionstrategist/the-option-strategist-weekly-updater-4866315?e=5f15d5ff5d
Fisher wisdom : https://email.ipe.com/cr/AQju8Q8QlvmQARjXhuqvATDRkOwQ2fTc_ArTjPJPzZJSnNlX208UOI7D8kSZS-3jDHZ_15A
Investor Show Yesterday in London
I was able to attend https://www.eventbrite.co.uk/e/london-investor-show-2026-tickets-1986974510248
While we call ourselves options investing we really mean trading, while investing in education. However the show was primarily concerned with investing and some unusual alternative investments such as LEGO! My dismal alternative investment record remains …..dismal. Anyway thanks to the organisers, I think it’s important that sleepy Britain takes more than a passing interest in looking after our money. As opposed to letting banks rake in billions from our cash deposits.
Distraction Trades
ADA was $0.2081 now $0.1931 more downside
XRP was $1.2802now $1.2512 Crypto -it’s a mystery! I like this source https://coinmarketcap.com
DAX : a turnaround and 3 wins 2 losers 360 nett The old and new methods lined up on these trades. More work to be done
UK Gilts Were £15.22 now £15.31 This is based on the Vanguard ETF. (VGOV) A rocky week . Remember this ETF has a yield of 4.61%
Silver: Using Wisdom Tree Physical Silver(PHAG) was $49.19 now $44.73 Why are precious metals getting slammed? A few big players manipulating the market?
Legacy Trade 424, 487,8,9 and New Trade 490
Trade 424 High Roller, This is a Trade Gone Wrong
PRECIS: We started from a July 2025 losing trade as below. Short calls are rarely a good idea.This was a ratio spread 8450/8650 calls
In summary we have an old trade from July 2025 which was a loss of 1741 against the credits taken in, of 422
(Rolling credit as of Sept2026 now 1408)
Previously 8400 call 2266.5 8600 call 2067.5×2 = 1868.5
Then 8400 call 2308.5 8600 call 2109 = 1909.5
Then 2070.5, 1871(x2) = 1671.5 Position improving
Was 2164, 1964×2 = 1764 annoying and we need to roll soon, currently 2170.5, 1972(x2)= 1774.5
Ouch! We got slammed, rolling meant we took in a miserly credit of 10 [ total credit now 432] But the horror show got ugly: 2492 and 2293(x2) gives us: 2094
Last week: 8400 call 2272 8600 call 2073.5 x2 Gives us: 1875
Now: 8400 call 2328 8600call 2129×2 =1930 We will of course be looking to roll this.
Trade 487 Nothing Make sense – November Expiry cycle Beckons
With only one week, or 5 trading days in October, we look at November and this means the US Mid Terms chaos may ensue. Let’s place a simple put ratio spread, so we’re not taking a full naked put position 10200 71.5 9900 37.5 (x2) credit 3.5 Max profit 300 risk at 9600. This is a recurrent theme but frankly these trades have done well over decades for this idiot. Remember the markets will see wild swings as events unfold with certain ‘World leaders’
Was 10200 Put is 27.5 and the 9900 Put 15.5 x2 Gives us -3.5 We now run this to expiry we had 5 weeks to go.
Then 10200 put 53.5 and the 9900 put 29×2= -4.5 So, Volatility is picking up
Now 10200 put 30 9900 put 16.5×2 = minus 3 No comment, just looks a bit lost.
Trade 488, We Can Use Trade 484
So we have the long Put spread 10400/10250 42.5 and 30.5 Can we use this? We can sell another 10250 put for 30.5. We can sell the 10400 put for 42.5 and buy the December 10400/10250 spread for 80-62=18.
A) sell 10250 put gives us Nov10400 84, Nov 10250 59.5×2= -25 Now: 48.5 and 33.5×2= -19.5
B) Dec spread 10400put 132 10250put 102 =30 Nov 10250put 59.5 gives us -29.5 Now 33.5 for the short put Dec 10400 99.5, 10250 put 75.5 = – 9.5
Both have not exactly shone, but we run to expiry or big profit.
Trade 489 Is This For Real?
Call prices seem to make no sense to me 
We are going to buy one 10950 call and sell 2x 11000 calls. As shown, the prices are 51 and 39×2, which gives us a credit of 27. We have risk at the unlikely level of 11050+27 = 11077
Now nothing is impossible and a tidal wave of cash may flee the US before November expiry on 20th. On the other hand it’s a gift of 27!
This week: 108950 calls 43, 11000 calls 31 = -19 No need to panic. Although…..
Trade 490 Nov Options have some Juice in Them Still
Hallowe’en 2.0 it’s another pitchfork,because…… why not? I think many of us see little upside prospect yet the index seems robust. This is not a classic pitchfork it’s throwing out the rule book, in part but we’re nett sellers while the volatility looks rubbish. You could call it an unbalanced out of the money straddle. Deltas make this look a tad bullish, remember put deltas are negative. Theta is yuuuge, however. Risk: we take in 295.5 plus 65.5×3= 492. Risk to the upside is therefore 10942, to the downside 10500 – 492/3= 164, so 10336 is it.
Glossary:
There are two types of options: Puts, give you the right but not the obligation to sell the underlying asset . Calls give you the right, but not the obligation to buy the underlying asset.
When you sell those options, the opposite happens, with puts you get stock ‘put‘ to you at an unfavourable price (or not) and calls you get the stock you own taken, or ‘called’ away. If you don’t own the stock you need to stump up the cash, but in both cases with the FTSE index they are cash settled at £10 a point, so losses and gains are uncomplicated.
Please read the links below for a more comprehensive explanation in simple terms. Options are about mindset, only a modicum of intelligence required.(I’m living proof)
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, give it a whirl. (AI gets things wrong, remember)
All opinions expressed here are not to be taken too seriously and all of the trades are for educational purposes only.