Discussion Forum

I honestly don’t know where these trades come from- it’s certainly not genius!

get ready below! Market is in selloff mode -stay awake

OK- NOW I’d have sold the 6600 put for about 33, giving us a credit of 16 on the overall position and you could get creative with the calls too. So the most this trade could give us now is another 50 and our risk is at 6550 -about 6% below the market. Time to have a cold one….

59 38 24 These are the prices for the 7050/7000/6950 butterfly. we pay 59 +24= 83,and we have the credit from selling the two 7000 puts 38×2= 76.
So 83-76= 7- no change there-just keeping a weather eye on things…

As a lacklustre trader I at least survive and make profits. A better trader would double the account every year, easily

Congratulations on the century!! 🙂

Trade 99, we paid 30, it’s now 51. Should anyone know of a stock that can do this-please let me know and I’ll give you ten grand for it. Yet again, options smash it out of the park, yet the dullards, the dismal and the dreamers think forex or stocks will make their fortune. Jog on losers, we only win here!

currently worth 27- not yet the kind of winner we look for but it’s ok for now as the F sinks (stinks, some might say!)

Trade99 would have scored 40, on a debit of 30. A share trader might wait a year for a 33% return- would we take that? It’s a quirky trade and the FTSE may well be headed south again,and any move >100 makes the front month more valuable. currently the position is flat again at 30 to close out.

OK-even better if you’d closed out the shorts- the Oct options are now worth 80,as the FTSe for no good reason has smashed up. Now…if you’d held on to those short 7400s they’d be worht about 30 apiece x3= 90, the long call and the long put are about 80. How would you adjust? So many ways…to be explored

It’s expiry day and trade 96? Of course it’s another winner -making the spread worth about 30 at 09:30-ish. This flies against the history of recent expiry weeks but there had to be an up week sooner or later.

jus trading 5 lots here would give you £1,000 profit in a couple of days but remember this can be rinse and repeat every month.You now have an income for life

WINNER YET AGAIN!!!!! ok those Sept options – the puts 4.5, the calls 4, so that’s 13.5+12=25.5, the Oct put39.5, the call 31= 70.5,take away 25.5= 45. That has almost doubled our money in just 2 days. Paid 24 remember? Let’s see where we are tomorrow-but you could take that to the bank and have a day off.
These numbers amended after dodgy settlement figures

now 492 and 508 = 16 but not in a good way

SMASHED IT!!!!!!!! 38 to close out in a week. Would you want to trade anything else?

trade 93 hit 11 but I think I missed the top-anyway another win. Zzzzzzzzzzz

trade 94 now a very pleasant 18 to close out- that is £900 for 5 lots in 3 -4 days probably equates to about 30% return on capital, used as margin

trade 88- looking back it made a tiny profit but it was a safe trade,keeping some skin in the game. Idle cash makes no interest,so we beat the market

if you’d just gone in as a ratio trade it would now be worth 7,and you paid 3.5…but it’s early days, this has another 29 days to give us a real win.

Trade 92- now trading for 30- as we brought in 57.5 we can say take about 50% profit here,and go sit on a rock in the ocean for a fortnight. Why on earth would you bother with rubbish like crypto or forex?

So, if you’d bought the spread, you could then sell the 7750 calls for 29.5 giving you a zero cost trade. The spread has increased by 6. As always with options there are choices and unlike other trading methods,there is no time pressure you DON’T HAVE TO take the trade, you can leg in, or leg out. You do have to start somewhere however, an if you’d just piled straight in with a debit of 3.5 you’d be looking at a trade now worth 6. A share trader would be thinking that’s a 70% gain! For us it’s nothing but in 2 weeks it might be worth 20 or more.

This was a Monster- making as much as >50 a month’s income in one trade.

Killer trade- th Sep puts are now 38 with the Aug ones 0.5 x3= 36.5 from an outlay of 14 plus a bit of margin. That’s got to be around 10% ROCE. We like these as the success rate is so high

Winning is not our aim- education is our core value. the power of options THAT is the key-and if people ignore options trading, or even worse, get into some nonsense scheme with forex or cryptos, they will never become profitable. Directional trading? Forget it.

to be updated

These trades hit 20 today -so we have bagged a double winner. Would we exit now? Why not a half portion? Leave the rest for speculation as a freebie

LOL- long and wrong! Well, we could take a small loss on this and close out for 6, or let it run. Looks like the BofE rate rise is anticipated- from 0.5% to 0.75% is a 50% increase- but in real terms it’s not even a bag of peanuts -another 5p a week on £1,000

Get over yourself- lazy old wotsit! Seriously- this s a strategy that is proven time and again- so let’s see. I’m really pumped with this!

Anyone remember the Sumitomo copper scandal in the 90s?

trade 84 now trading for minus 4 still early doors on this of course

well that knocked us for six! The trade is 82 to close- but let’s hang in there

YaY! We hit 214.5 -but actually we did more than this,but closing price on Monday gave us 214.5-180= 31.5 profit- or 16% -apologises I don’t have time to keep up with intra day moves sometimes. However you cut it, this is a nice win

the diligent ones among you will of course realise that trade 79 is using June expiry options

Ouch!!!!! I did NOT see that coming- here’s the outcome this week 274 176.5 x3, =529.5, 86×2=172 so we have 446 for our long calls but 529.5 for short calls= a loss of 83.5.And a debit of 2 to get into the trade….ugh!
This is our biggest loss to date and salutory lesson. Trade 78 was safe however with a tiny credit of 3.
This trade was and will remain a theoretical one as the huge market move has turned it into a very ugly position- maybe the strategyw was right but the strikes were wrong…..
More homework required,and we can backtest but this does not look like a happy outcome-though next week could get bearish…..please?

Curiously this trade now works out at zero, the 7450= 106.5,the 7550s= 45.5×3=136.5, nd the 7650s=15×2= 30. I don’t have to tell you any more…

Well, this puppy closed out for 65 last night (mon 16th)Not it seems because of impending war but because the £ rose against the US$ or some such thing!

this is a shocker- on P/E metric FTSE is hugely undervalued -extraordinary
see:https://markets.ft.com/data/indices/tearsheet/summary?s=UKX.P:FSI

great article

This trade does of course require some margin- we are buying 6 calls and selling 8

Exit IS everything remember

Well, today was interesting not sure what is moving the markets -impending war with Russia? Who knows but one thing I would have considered here-if I’d still been in this trade would be to look at morphing into a put ratio spread and maybe spending a bit to do that- but we are only day 2 into the trade. If the market looks like it’s going off a cliff we need some protection however as anaked put get get big on you in a heartbeat.
You may also wish to know I am not, by nature bullish so if forced to use these options,I’d have sold the call and bought the put- my stock in trade in 2008. This would have made a tasty 28 and acredit to open( I always seem to lose when I place a debit trade)

Could have closed out this morning in the first hour for 10- but we want to have fun don’t we? When I trade these I look for a price that I might take and then look for 30% more on entry and exit. I’d take this trade for a zero debit as also could have been done today- the F has got its knickers in a twist while the DAX continues its whirling Dervish moves

Smashed it!!!!!!! That trade could be closed out for a credit of 0.5 -That people, is £2,500 in your pocket for less than 2 days of trading. Risk was respectable,margin managed. And you want to trade bitcoin? Shares? Get with the real money

Tariffs- not a good idea especially as Chinese steel is not a problem being 2% of America’s steel imports. China’s economy is predicated on stealing copyright-and really we should just boycott all their stuff until they start to recognise that design and origination must be respected. It is the decent thing to do

sometimes trading can seem a little abstract-it’s good to remember it’s real money,and to size positions according to the size of our account. Recently margin more than doubled- you need to take care and avoid over extending yourself.

the nakeds didn’t go well- the Iron condor not great but not a disaster- plenty of time for that still!

this would have closed out a couple of days ago for almost the whole 20 credit-sweeeeeet!!

Currently the put condors are showing about 50% profit- the call condor? 40% loss.
Would you take 2 or more of these? You might end up making your broker rich while you tread water

Thanks so much for the post.Really thank you! Keep writing.

I admire anyone who succeeds but Mr. Buffett annoys the heck out of me and has had major losses yet managed by accident of birth to be in the market during the greatest ever economic expansion in the history of the universe. But he is an investor, and has had time on his side. We have to trade to generate profits,and that is a very different prospect. We need a bit more gas in the tank, more rpm than the fortunate Mr.B