FTSE: This Week – UP : Monday- Friday 16 points rise-that’s 4 up weeks. Last week’s was about 2%. One comment really-we no longer have a market just long only ETFs
Daily Volatility: 11 – 9.13 from 10.8 – 9.273 tiny range again-and the 11 is a split second peak at 9 on Wednesday
FTSE cash index – open 7519 high7565 low 7522 close 7535
FTSE volatility- 9.98-9.13 (last week: open 10.4 close 9.98)
What Trades Would Have Done well
TRADE 51- On Monday I suggested a very quick turn around, as this trade would now be languishing in the ‘could’ve done better’ file. Seems like a short strangle or indeed anything using theta (time decay) would have done well. In fact you could have sold the 7650 calls AND 7350 puts for a credit of 22, now 12.5 to close. I would not like to be naked puts however with so much potential downside.
SUMMARY
The stockmarket is a different beast these days. In 2008 it was very very possible (as I did mostly) to trade the stair steps down to 3460. Not sure what it will take to get the market back-maybe this is the new paradigm. Taking small higher risk, further dated trades may be the only way to trade options.
Sidenote
I have traded some of the trades as posted here- but by no means all. My time and my own strategies may not be consistent with the trades to date. The aim as we always say is to educate, and maybe even inspire people to get trading. We are very far from Forex trading -which, to us, is just a random squiggly line. You could get lucky but you may find that statistics wipe you out. Directional trading means you will have 10 consecutive losers. Few people can stomach that. Even fewer have fat enough accounts to take the hit, unless you are trading pennies. Stops don’t always work, remember.
