Reasons for the Trade
I would like, firstly, to thank https://uk.investing.com/indices/uk-100-historical-data for their fantastic charting facility, and can throughly recommend a visit to their site. I am no expert in TA but I do believe there are ‘key levels’ which the market harks back to. Of course we are still in an era of ‘Clown Car Banking’ (where more clowns come out than can logically fit in the car- the banks do that with money). Can you tell I am mildly annoyed at QE still?
My Own View on This Chart
You can see the line- at least I hope you can see the line at around 6900. Now the received wisdom says that a line is relevant when it touches more than 2 points. Makes sense really. 4 times it was a new high-and an old high from 2000. The market then broke through, dropped again then twice hit that level before breaking through in December’s rally. This is a daily chart and does not show longer term, how thin volumes are these days. On that basis you’d expect more volatility. Well, I would. But it hasn’t happened. Yet.
This is a Personal Rant and Not Trading Advice
While my track record is quite good -80% win rate, I am not recommending basing their own trading on my distorted views. This trade has another 3 weeks to go and I hope to do better than break even. Losses happen-those are ‘the rent on the shop’ and there is no shame in losing. Unless you have completely ignored your own methods and discipline. In the early days of trading we all mess up-that is later called ‘experience’. So let’s leave this trade to work, or to put a dent in my trading record. With this R/R I can still make money with 40% wins.
Well this is a damp squib! 2 weeks to go,and some possibilities using the long puts as part of another strategy I sometimes employ in expiry week
Have to make some decisions on this- still some value in the long puts but I have quite large exposure here and I don’t want to leave naked puts hanging for too long. The world continues to go crazy,the marketcontinues to ingore it-until it pays attention.