The Week’s Action
FTSE cash index- 7527 open 7463 close high 7545 low 7378 (last week 7547 open 7527 close high 7598.99 low 7449.73)
FTSE volatility- 9.86 open 9.96close ( last week 10.83 open 9.85 close)
What Trades Would Have Done well?
Wednesday saw another feeble high- shorting this with long put spread strategies, selling call spread strategies worked very well (personally we made £££££)
Market Volatility
High12.1 low 7.68-not a suitable environment to sell premium in isolation
News
Grim non-market related news.
No interest rise as predicted but the B of E vote was interesting… QE stays at £400 billion give or take a few billion.
Summary
Trading nimbly, looking to trade volatility smart worked well. We don’t get 100 point+ moves every often.
We are now of course in the July expiry cycle, and Friday’s action was the usual BS- smashed up 40 points for the auction at 10:00am. The big players don’t want their puts exercised. It is market manipulation but it is ignored. Options are the tail that wag the dog.
