Options: Trade 6 another win, so what’s the lesson?

You Only Learn When You Lose

It was hoped that this trade might actually go wrong, so we could show  possible adjustments. With the next trade we aim to show ‘morphing’ into something new. Options are ALL about mindset, with a smattering of maths. Thankfully we have the CBOE calculator to do the maths for us.                                                                                                                                                        We only have to input known information http://www.ivolatility.com/calc/ try it-have FUN.                                                    FTSE December6500 put is 32      TIP: you need to know the price of the option, the expiry date (3rd Fridayof the month) and the strike. That’s IT!

What Does A Loss Look Like?

Had either side of the strangle got into trouble- we may have seen FTSE go above 6900, I would have reviewed our options (no pun intended). But it makes no sense without real world prices. There will be losing trades, and learning is our intention here. We will have fun with this, but there is no need to have outright losers. I know of a trader who traded horribly through 2007/8, just selling puts. Big losing trades. Not my choice but this trader came through and chanced his arm against the risk of ruin. He was ok because his mindset won the day, all credit to him. He had a strategy for ‘morphing’ or ‘rolling’                                          If he’s reading this, I know it’ll raise a smile. You can lose with options for years and still make money – been there too!

Is This For Real Life?

All prices, entry and exit are taken from the exchange. Options are not a ‘Trump University’ type scheme. This site is solely to motivate people,to provoke thought, dialogue and to help with  first steps. Finding the links we post here might take a month of Sundays to a newbie. This is a fast track to our trading reality. There are NO stupid questions, so please feel free to make contact