Monday, 30 March 2009

On the Way?

Are the markets headed south again? And if so I am ok down to 3300 on the F, as I sold some 3550 puts against a long 3700/3650 put spread. I may be on the way to completing my first ever 'Box' trade- owning both the put and call spreads at 3700/3650, so locking in at expiry a guaranteed 50. I aim to pay as little as possible for this but so far only paid 12 for the puts so anything below 30 for the calls would be perfect. Assuming I pay 30 for the call spread, my buy price is now 42, to get 50, BUT I also sell other premium to finance the trade, which may mean it costs as little as 20 or so.
It would have been much better had I got out of last month's horrible trade, but I am still stuck with short 4000 calls, which are decaying and despite a jump in volatility were trading at 38 or so.
Can't win 'em all but I aim for zero losses. Protection of capital and monthly profits are the fundamentals of my trading.
Meanwhile our politicians continue to shoot themselves in the foot, showing how rotten our society has become.
As I'm in the city tomorrow I wonder if I'll be considered a capitalist or anarchist- my loyalties are divided!
PS. Anarchy does NOT mean chaos- it means leaderless- as in, we do not need to be led, especially by moral bankrupts and inept faux economists.

No comments:

Post a Comment