That Was The Week Ending 08 Sept

FTSE – Modest Downward  Range.( 116 points down ) Daily Volatility up this week  from  11.18-11.99

The week’s action was muted considering the  fireworks of a North Korean variety. Rinse and repeat.

FTSE cash index –  open 7438 close 7378 high 7438 low 7322  Last week  ( open 7398  close 7438 high 7460 low 7298)

FTSE volatility-  open 11.18 close 11.99   (last week open 10.89 close 11.18 )

What Trades Would Have Done well

Selling calls/call strategies. The 7550 call  went from 11 to 1.5 for example. Does this always work? No .Would buying puts have worked? No– THETA is too great at this time of the expiry cycle.

Market Volatility

From  15.9 to 10.3     ( last week’s range 9.82 to 13.27)  As observed last week : August and September are the only two months to average a stock decline since 1980, according to LPL Financial.(quote from CNN) August was thus: 7372 to 7430

News

This from our esteemed Mr. Strang http://www.iii.co.uk/articles/442493/ftse-100%3A-big-picture

There may be new highs ahead and we are now in the final run to the Xmas rally. What could derail it? David Meade, author of ‘Planet X – The 2017 Arrival’, asserts the planet Nibiru (also known as Planet X) will crash into our own on 23 September 2017.We do not have an options strategy to prevent planetary collision. Other ‘educators’ may offer better insights!

Summary

With expiry next week watch for short positions getting hit- we will see upward movement as certain ‘interests’ don’t want their puts to take a hit. Here’s a thing- I look at open interest ( self explanatory term I hope) and find 7200 and 7500 have the highest near-the-money open interest. Thus where the bulk of options have been traded, and still in existence. I think those strikes will NOT be hit. Don’t take my word for it though. As always do your own research.