Aims of this Blog

The key aims- a place for me to get feedback from fellow traders about my trades- the good bad and ugly (not you traders, the trades I mean). It is rewarding for me to be able to explain what I do and why I do it, and it's a lonely old business so any feedback is welcome, it keeps me on my toes.

I would like to establish a small group of traders at all levels, and this is a less time consuming way of newbies getting a 5 year 'fast-forward' in trading options-if that sounds arrogant I humbly apologize, but I genuinely believe I can show where there are shortcuts. I have been doing this for a while and have evolved my own style, which is what  all traders must come to. I want people to get rich slow, and not get taken in by the rubbish in the financial media. Trading is about the individual, options trading is about the smarter individual.

I will post a few charts in time but for now the markets seem poised to do the most damage to the most people. Thousands of seasoned traders have been wiped out, private equity and hedge funds have dropped a bundle and long only funds are in dire straits. Good traders are thriving.

Closed out

Closed out my risk reversal for a credit of 22. This was (and I always aim for this) a credit trade when opened-so a total of 27 per lot minus trading costs of course.

The above 22 was a 'best guess' knowing the deltas of the options- it is not the optimum price, but  I placed this as a pre-market order as I took the chance that the F might not allow me any profit, so this was a very comfortable outcome. I can now go off to my civic duties with no trades, and the prospect of watching some good rugby on the telly this weekend. unfettered by thoughts of trading. (Nah, I never really switch off).

Fingers Crossed

Nasdaq has turned negative and FTSE futures have dropped well below the 3900 key level -the cash is still 6 points above. I have to think that LLOY up 30% today will mean profit taking tomorrow as people probably don't want to be holding bank shares over the weekend. Funny though how the £multi billion losses at RBS caused the market to scoot up-the city really believes that's a good result!

Incidentally my reasons for the trade- DOW hit pivot level R1 and prompttly retraced, and the F hit R2 for the second time- curious coincidence that R1 is at 3900 on my chart.

Trade placed

combo (risk reversal) sold 4200 call @ 33.5 bought 3500 put @ 28.5 thus a credit of 5.

Now we wait for drop. 100 or so  would make my week!

Caution

The binary trade is not worth doing now as F looks quite strong-and the risk reversal-might look for better price or 4200 call buys 4500 put for zero. The DOW is 'owed' an up day, but the F has put in 3 consecutive up days about twice in a year-the last one however was a run of 6 up days and a 9% rise in the index-swiftly followed by a 14% drop I should add.

Missed the third F rise to 3925 due to er natural causes. Looks like more upside to come.

trade watch

Currently watching risk reversal -sell 4200 call to buy 3450 put- FTSE March,at zero or small credit on expectation of down move of 60 points+

also binary bet-FTSE to close down on IG at 10 or so to buy.

Musings

It's impossible to share feelings about trading with people who don't trade. Trading is about oneself and the journey towards being comfortable with being uncomfortable. Methods are highly individual and I'm sure we have all experienced the vehement support a fellow trader has for a system that we simply 'don't get'.  A bit like music I guess.

I hope to be able to discuss fresh ideas, old ideas revisited, the frustrations and joys and REAL trades, which I have shared to some degree on Motley Fool.

Gentlemen NEVER discuss size, but nothing wrong with %ages.

Today is another frustrating day as I missed a good short entry earlier-the FTSE(always referred to as the 'F') may well oblige later. For me 3969 is a key level and the F hit 3960 and I had to miss a great down move. There may be more of those......