No trader in history has learned his craft without a mentor. I like to post real trades, and inspire-this is the latest from my website-it's all free, by the way.
Here’s the Plan
June FTSE expiries-19 days to go. Buy the 7625 call @22, sell 2 of the 7700calls @11.5– result small credit of 1. Buy the 7450 put@30.5,sell 2 of the 7350 puts @15, thus a small debit of 0.5. Overall more or less zero.
What’s the Point?
Unused margin no longer sits, idly losing value. Thinking that the market has run its course, (or perhaps not) we are thus positioned for moves either way. We realise profits as the market moves above 7625, or below 7450. Risk? what about the risk? This is the interesting part. With both sides the result is we own some options and have sold more. Ponder anew. We therefore own a spread, and potential value, along with some short options. Our 7625/7700 spread is locked in should the market go that way.Thus the 7450/7350 is too.
Where is the risk?….7775. The puts? Risk at….7250. Understood?
Max Reward
With a market drop our puts thus give 100, or subsequently on a rise, the calls give 75.
Here’s the Plan
June FTSE expiries-19 days to go. Buy the 7625 call @22, sell 2 of the 7700calls @11.5– result small credit of 1. Buy the 7450 put@30.5,sell 2 of the 7350 puts @15, thus a small debit of 0.5. Overall more or less zero.
What’s the Point?
Unused margin no longer sits, idly losing value. Thinking that the market has run its course, (or perhaps not) we are thus positioned for moves either way. We realise profits as the market moves above 7625, or below 7450. Risk? what about the risk? This is the interesting part. With both sides the result is we own some options and have sold more. Ponder anew. We therefore own a spread, and potential value, along with some short options. Our 7625/7700 spread is locked in should the market go that way.Thus the 7450/7350 is too.
Where is the risk?….7775. The puts? Risk at….7250. Understood?
Max Reward
With a market drop our puts thus give 100, or subsequently on a rise, the calls give 75.
Posting Trades
Aucun commentaire:
Enregistrer un commentaire