Option strategies

stevespray

Well-known member
May 24, 2001
1,289
154
73
Bristol
#61
My 5125 Calls are presently covered. I have bought exactly enough Futures to cover the exposed Calls. I'm actually sitting on some profit because the Calls arent 100% delta.

Steve.
 
Jan 11, 2005
664
7
28
London
#62
stevespray said:
My 5125 Calls are presently covered. I have bought exactly enough Futures to cover the exposed Calls. I'm actually sitting on some profit because the Calls arent 100% delta.

Steve.
===================================================================
I thought ur calls were naked. I Did not realise they were hedged. Your loss on short calls is covered by gains on profits from ftrs with higher delta.
Now you have to keep ur eyes on the ftrs positions incase it reverses.

This bull run on ftse has really surprised many of us :rolleyes:

Bull
Always have the advantages in your favour and let others have the disadvantages :cheesy:
 
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stevespray

Well-known member
May 24, 2001
1,289
154
73
Bristol
#64
Bull, I hedged in on Friday. FTSE was originally called down about 20 at the open but I suspected that it would get bought back. As soon as it opened I was ready and as soon as I saw the buying I also bought a small amount. Finally found myself fully hedged with an average about 5131. As you say, need to keep a watch now for a sharp reversal. What I may do (as the US is closed today) is ride these for a couple of more days and then cover them. Hopefully some more premium will fall out of them. Either way it looks likely that I'll make a profit and on top of that I've already made a nice tidy sum from hedging / scalping a week or two back.

Not the most enjoyable month but its far better than making a loss!

Speak soon,
Steve.
 

stevespray

Well-known member
May 24, 2001
1,289
154
73
Bristol
#65
Just bought back the 5125 Calls at 62.0 and closed the hedge at 5173.5 - the net result is actually at 0.5 point gain on the 5125 Calls. I toyed with the idea of holding these longer but it just aint worth the stress with FTSE so strong.

Time to start looking at some plays for August expiry.

Laters,
Steve.
 
Jan 11, 2005
664
7
28
London
#66
Stev,
Try to get into a strat that gives less stress and also gives you more time/freedom to enjoy life.
Amazing start today ftrs up 10 cash up 8 with 28 losers 71 winners one unch.
I'm still spending all the profits made from last 6 weeks on Julys long puts. They are now cheaper than fridays prices.

Bull
Life is about living and not just trading :LOL: :cool: and of course spending :cheesy:
 
Jan 11, 2005
664
7
28
London
#68
bulldozer said:
Stev,
Try to get into a strat that gives less stress and also gives you more time/freedom to enjoy life.
Amazing start today ftrs up 10 cash up 8 with 28 losers 71 winners one unch.
I'm still spending all the profits made from last 6 weeks on Julys long puts. They are now cheaper than fridays prices.

Bull
Life is about living and not just trading :LOL: :cool: and of course spending :cheesy:
====================================================================

It pays to spend some profits on long puts[near month] cause they are so cheap and anything can happen to the mrkts. 7/7 is just an example. I was still buying cheap puts up to the day b4 the bombings.
Aug 5025 are at single figures. Expiry is on the 19 th

Bull
 

piphoe

Well-known member
Oct 31, 2015
10,046
194
123
#70
Larry, when is fl's ban lifted?
 
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