The Week’s Action
FTSE cash index- 7312 open close 7350 high 7386 low 7303 (last week 7424 open, close 7312 high 7481,low 7303 )
FTSE volatility- open 13.03 close 11.77 (last week open 10.38–13.03 close)
What Trades Would Have Done well?
Anything utilising theta (Time decay)
Market Volatility
from 10.10 to 12.46 (last week 10.10 – 13.27 ) a suitable environment to buy cheap, and small. There may be losses, so keep them minimal. Theta needs to work for us, however.
News
Non Farm Payrolls- first Friday of the month https://www.forexfactory.com/calendar.php#detail=64379- used to be a big market mover -but this has been a very flat week for FTSE high to low about 1%. I think it’s a good illustration of how often the market goes nowhere. Traders who rely on direction in order to trade get killed in these weeks. The majority of weeks are like this. Therefore the majority of directional traders get killed.(Tongue firmly in cheek!)
Summary
Last week’s trade- a strangle (July) 7550 Calls and 6800 puts -credit of 14. Now could be closed for 5. Now it’s another week and you have to think “would I tie up my capital to make a maximum of 5?” I am not saying you should place a new trade each week. If there’s nothing new to trade, maybe collecting 5 in premium IS the right move. Sometimes making no move is the right move. Being 100% in cash is a position.
It is hoped that our followers will understand that trade selection is the key. People who trade direction only have to choose up or down. The gift of options is the wide range of possibilities -no need to be directional,often no need to be right either.