Predict the 2006 closing SPREAD of the FTSE....

MarvinS said:
Sir Francis - If you think this will be the case you can back your view.
Here goes strangle the 6025 and 6225 call spread! write the 6225 FTSE dec Call at 118 and go long the 6025 FTSE dec Call at 205. You are paying away a little but if you get it spot on could be fruitful.
Regards
Marvin
(Options specialist)

Thanks for your input Marvin, your time is appreciated.

I am always bull! I cannot explain why but even in early 2000 I anticipated a rise in the markets - I'm painfully optimistic by nature. :eek:

However there is more to it than that. It is my opinion that for the past five years a great many investors have been saving their cash in the bank or purchasing investments in property. The return on equities outstripped both these in 2005 and will, all being equal, continue to do so in 2006. The stock exchange is being forgiven for its dereliction at the beginning of the century! So there will be a great deal of new investor cash entering the market this year. A significant amount of SIPP money previously earmarked for property is now looking for a new home.

Although this cash is insufficient to impact on the market, it reflects an optimistic mood amongst investors that will be amplified by stable or reducing interest rates, soon to be reducing energy prices and ongoing M & A rumour. Company profitability will improve throughout the year and I'm both a prophet and the son of a prophet!
 
I am a pig! oink oink oink....

To be honest your perception is spot on at the moment we are going through a bull run, however what goes up must come down. I would personally not be much of an investor at these levels, however if one would of taken this opinion in the early 90's no money would have been made.
True the Net asset worth of the nation has significantly grown with property prices shooting up, however the younger generation will suffer. In regards to a potential credit crunch it seems unlikely as all our heads are stuck in the clouds. Blinkers on BUY BUY BUY!!!!!!!!!!!!!!!!!!!!

Who is more foolish? The fool or the fool who follows the fool. (Obi-Wan Kenobi Star Wars)
 
MarvinS said:
Anyone else want a decent option strategy? For a small Fee of course!
Always open to suggestions Marvin - whats your take on the markets now? Any hot tips? :rolleyes:
 
MarvinS said:
I do not know whether the 5280 target is too bearish. I am tempted to sell the FTSE at some point around here! Anyone have any opinions? Current price 5850 on the cash - i am looking for some profit taking just below 6000. Alot of traders pre-2006 were talking of a strong start then some profit taking towards the start of the 3Qtr. But to be honest alot of clients i talk to are not willing to go short yet, with all the M&A activity going on! Is it all hot air or not? Are we due for a sharp pullback soon?


Wall of money will keep the market bouyant throughout 2006. O2, baa, hof, P&O etc etc. My personal view, is you will only come to harm shorting this market. I predict a close of 6130 end of year. Good luck with your bear strategies!!

CT

ps clients? what are you a stockbroker??
 
As a dealer i am not going to divulge any hot tips, however i reckon the FTSE is heading for 6000 or higher. I tried shorting the FTSE earlier on but i have decided it's not the right time.
One thing i have noticed is the slight lag in the Nasdaq comapred to the Dow30. If i was to take a view i would trade the Nasdaq 100 Dow Differential, that is buy tech's and sell blue chips stocks, or another trade could be sell the Dax and long the Nasdaq.
Dow/Nasdaq diff - 9400
Nasdaq/Dax diff - -4200
 
Last edited:
5646.5 is my guess. Since of course no one actually knows, I simply took the mid-price of Fins quote for FTSE 100 -Year End 2006 :LOL:
 
MarvinS said:
Anyone got any new predictions for FTSE close for the year?

If I knew the answer to that I wouldn't have seen your question. :cheesy:
 
Taking the mid point of Finspreads Dec quote sounds fair - the spread is as wide as the annual range!
 
This thread is titled 'predict the closing SPREAD' - error, right? I assume you meant the closing figure of the FTSE index.
 
One small mistake the December price on the FTSE contract expires on the 3rd Friday of the contract period. This thread is based on the closing level of the cash 2006....
Still the winner gets a bottle of champers!!!
 
Visaria said:
5646.5 is my guess. Since of course no one actually knows, I simply took the mid-price of Fins quote for FTSE 100 -Year End 2006 :LOL:

Actually I took the price of the FTSE 100 Year end contract, not the Dec contract :)
 
Top