Update- Profit
We took in a credit of 280 and now this trade can be closed for 226(105 for the call and 121 for the put) – a profit of 54. Remember we sold the Jan FTSE 6750 put AND call, and so to close out the trade we simply buy them back. It’s like that car dealer who has sold you the car for £20,000 and then has to source it for as little as he can.(You know he’s going to make serious coin, dammit!)
Careful Trade Selection
Every trade to date has not been subject to a lot of scrutiny-they are based ona cursory glance at the numbers. Nobody knows how a trade is going to perform and these have been placed without any optimisation. Without technical analysis of the underlying. Without calculations being done beforehand. Imagine the power of options trading when done by an intelligent person applying due diligence!
Profit Targets- Set in Stone?
Not sure what margin would be required for this trade but selling just ONE of these stradles would have produced £540 in real money, given that comms could be as little as less than a tenner, and you may hang out for better entry and exit prices. It’s not that gut wrenching fear driven ride of trying to guess the market direction. It’s not the grind of futures/CFDs/stocks/forex. We probably all know that sickening feeling of being wrong, being stopped out, having 10 consecutive losers-no thanks. Worse…….. your stop gets missed, ruin imminent.
Risk Management
This trade was actually quite risky but common sense has to prevail(I know it’s the stockmarket!). Had the market absolutely dropped hugely, we would have been able to show a trade repair. We’re not going to do that, yet. Because we think it’s about little steps.
fortuitous close out again- the trade is currently 246 to close-not so much fun.