Trade 45 Feckless, Reckless- Why Not?

Feckless and Reckless?

Language devices are such fun.Like this week’s trade. I like aliteration and rhymes to reinforce a point. Like’ mad, bad and dangerous to know’ – terms once ascribed to Lord Byron. Who might also be described as ‘feckless and reckless’. It’s ok to badmouth the dead by the way. You cannot be sued for defamation. But let’s not be nasty.

I Digress, WHAT IS This Week’s Trade?

Indulge me for a moment as I recap on last week’s trade. You may recall (Sep expiries for FTSE) we are long the 7150 put(12.5),short the 6950 put(6.0) short 2x the 6650(2×3) put. The upshot here is that after taking in a small credit of 4.5,we are now in credit for 12.5, but,debit of 6.0 and debit of 2×3. We show a tiny credit of 0.5. Let’s keep that sleeping giant for now.

This Week’s Trade (Finally!)

I posted a point and figure chart which showed the market topping out. 3 times it hit 7550. 2 times I successfully took a nice chunk of change out of the market. Now the new 6550 seems to be 7400. So, that level seems to be exceeeded only briefly before price slinks back to ‘Chicken town’ to quote John Cooper Clarke   https://play.google.com/music/preview/Tkkbilakydqqmduzirlwavqlupe?lyrics=1&utm_source=google&utm_medium=search&utm_campaign=lyrics&pcampaignid=kp-songlyrics

Hope the lyrics don’t offend- it’s just whimsy. It’s how I view the stockmarket under the shiny exterior.

Back To The Trade

I’m having more fun with references than this week’s trade! OK- here we are-it’s a kind of ‘rinse and repeat’ it’s a combo. A risk reversal. We are thus selling the 7550 call for 14.5 and buying the 7150 put for 13. Key levels are therefore the reason I like this trade. Plus…. I know how to fix ’em when they break. Below is the P&F. Make up your own mind…….