Spreadbetting : Let's make some money

[stevespray]

FTSE surprisingly strong as is all of europe. Took a long on FTSE Futures Dec contract. Long 2 contracts at 4644. Just looking to protect the two calls which could become exposed. I have to admit I didnt expect this kind of strength just here. Will add a further two contracts if we push above 4670 on Dec futs.

Steve.

 

[stevespray]

Added a further 2 contracts long on FTSE at 4660.5 This looks too strong to ignore. Tight stops on second positions.

Steve.

 

[stevespray]

Opened 4 contracts long on Dax December. Also added a further 2 contracts long on FTSE. This means we are net long of FTSE. It is far too powerful to just sit by at present. FTSE is just mental.

Steve.

 

[nutter punter]

Opened 4 contracts long on Dax December. Also added a further 2 contracts long on FTSE. This means we are net long of FTSE. It is far too powerful to just sit by at present. FTSE is just mental.

Steve.

this is great reading and I hope it works out very succesful but I am not sure how you hedge these at the strike price as clearly you are going to have a large gamma position coming into expiry and your ins and outs on the Futures could be very painful? Short gamma hedging is a great way to do your nuts buying high and selling low...... Do you hedge according to the real delta or just as if it was a 100% ?

Also near month volatility is naturally the most susceptible to bursts and being short vega like this could be a real bugger should any sudden change in the market occur. Do you have stops in place to buy back these options or do you simply never bother and just hope to trade on a 100 delta if the market goes through your strike price?

 

[nobrainer]

Thanks for sharing these trades with us steviespray.I had a few friends who used to do strangles.......sadly as one poster mentioned, it seems u make money 10 out of 12 months and then get totally hammered on the remaining 2.The current markets make a mockery of strangles.Its generally expensive to keep hedging and if the markets keep rising can lead to severe problems esp as many investors will close one side of the trades if their panic or buy loads of expensive 1way protection.
The other major problem is 'margin' presumably in volatile times.
Still, I don't trade options or do indices bets , so I'll learn something .Anyhow, I hate the idea of always being 'exposed' in the way futures/options traders are.Being predominantly flat overnight is far better way to trade imo and just as lucrative if not more so.
Btw, if I'm talking nonsense , please tell me cos as I say I'm not an options trader.

 

[stevespray]

Morning, I see there are some questions, I will try to answer as soon as possible.

In the meantime the last added ftse futs position was stopped out for a +4 gain.

Watching Dax closely. The extra money we have earned from FTSE gives us plenty of scope on Dax.

Very heavy workload at present,
Steve.

 

[stevespray]

Dax stopped. Lost 8 on 4 contracts. Will re enter long if Dax cash breaks above 4010.

Steve.

 

[tcksee]

Hi steve
what was your final result of your oct account
best wishes tom

 

[HAI]

Steve,

Do you use any strategies for Spread Betting other than the Options one outlined here ?