That Was the Week Ending 23Feb

Terrapin Trader,

 

The Week’s Action

A 100 point range all week and some downside, losing about 1%. Low volumes, which may mean a bit of a breather-or indecision as it’s better known. The bigger picture? Central banks and inflation seem to be the prime culprits for the uppy downy stuff.

Where Are We, Where are the Markets?

The fresh young things got a bit of a wake up recently, and that is a good thing. The staggering complacency of the last 24 months has not been healthy. When the dumb money simply buys the market tracking ETFs we stop having a market. Why would you make a short market against such a tsunami of money? Some fund managers did, and got crushed.

How Have Our Trades Fared?

Trade 65 Iron condor-opened for credit 19, now 21.5– selling the 7200/7700 strangle was not a great idea either- credit 68, now 72.

Trade 66 opened  for credit of 20– a close now for 2. Fantastic trade, probably around 20% ROCE(Margin)

Trade 67 Condors-  (1)open for 35.5 now 43.5 (2)Open for 31 now 38.5 (3) open for 20, now 25

What Can We Learn From This Week?

It’s all about the FED says this or the FED says that. Interest rates, inflation.

So, Warren Buffett produced his annual letter. He is an investor and has just won his bet that passive investing in the stock market beats active trading. However if we cherry pick, from  http://www.macrotrends.net/1319/dow-jones-100-year-historical-chart He’d have looked pretty silly if he’d said this in 1965 or 1999. I don’t pretend to possess one tenth of his acumen for the market-but he invests in businesses. I hope most traders from 1999 to 2009 absolutely beat the market. And continue thus. We like trading, getting great returns from modest risk. We manage trades that go wrong. When you buy a stock that turns south you can lose your shirt (A tweet from Kylie Jenner wiped £1bn off Snap’s stock market value after she said she’s no longer using Snapchat)……….Just sayin’

Published by Terrapin Trader

First found out about options in 1995.From the arcane magazine Exchange and Mart! First trade- a covered call on VOD in 1999. Made 10%,VOD almost doubled. That's when I realised I was not a good trader,and I was forgiven thanks to the amazing world of exchange traded options

2 Comments

  1. I admire anyone who succeeds but Mr. Buffett annoys the heck out of me and has had major losses yet managed by accident of birth to be in the market during the greatest ever economic expansion in the history of the universe. But he is an investor, and has had time on his side. We have to trade to generate profits,and that is a very different prospect. We need a bit more gas in the tank, more rpm than the fortunate Mr.B

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