Trading should be complicated

Windlesham1

Active member
Jul 30, 2003
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#32
Sorry. I mean IG allow you to spread bet on the underlying value of options

View attachment 258686
Look at the spreads on those- that's a 25% haircut-and heaven help you if you actually have a winning trade. I'm fully aware of IG, and used it for many years when they had proper binary options -but they got greedy with those too. I trade strategies- and this is not possible with IG's ludicrous pricing-it's strictly for the Mickey Mouse end of the market.
 

Windlesham1

Active member
Jul 30, 2003
388
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United Kingdom
#33
From my site-
Trade110 Feisty? Moi?
A feisty 3×1.
We have been here before and I know of a fund that was blown up doing call 3×1s. What is a three by one? We sell three, and buy one. This is for expiry week, so we use the December series. We buy one 6750 put for 31 we sell three 6600 puts at 9.5×3=28.5. So our cost is 31-28.5= 2.5. Risk is at 6525 -we own the 6750, which is worth 225 at that level. The 3 x 6600 puts are worth 75×3=225. All clear? This trade makes a profit if the 6750 put is worth more than 2.5 next Friday-or sooner. No upside risk, limited to a max 2.5.
Yes, there is a possibility of the market dropping below 6525,and we will show how to adjust.
 

NVP

Well-known member
Jun 21, 2004
35,834
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west sussex, UK
fxcorrelator.com
#34
very interesting W.....i hope people take you up on the offer

i love challenges and learning new markets and strategies.......

one day when i step away from my core forex trading work i have a handful of other strategies i want to get involved with ....and options is one.......

cheers
N
 
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Windlesham1

Active member
Jul 30, 2003
388
15
28
65
United Kingdom
#35
very interesting W.....i hope people take you up on the offer

i love challenges and learning new markets and strategies.......

one day when i step away from my core forex trading work i have a handful of other strategies i want to get involved with ....and options is one.......

cheers
N
you're welcome- let me know if you ever hear of anyone actually making money from forex, please!
 

wallstreetwarrior87

Well-known member
Oct 14, 2009
1,288
255
93
#36
From my site-
Trade110 Feisty? Moi?
A feisty 3×1.
We have been here before and I know of a fund that was blown up doing call 3×1s. What is a three by one? We sell three, and buy one. This is for expiry week, so we use the December series. We buy one 6750 put for 31 we sell three 6600 puts at 9.5×3=28.5. So our cost is 31-28.5= 2.5. Risk is at 6525 -we own the 6750, which is worth 225 at that level. The 3 x 6600 puts are worth 75×3=225. All clear? This trade makes a profit if the 6750 put is worth more than 2.5 next Friday-or sooner. No upside risk, limited to a max 2.5.
Yes, there is a possibility of the market dropping below 6525,and we will show how to adjust.
Hi Windlesham1, can I ask what is the margin needed for this "feisty ratio" trade based on 1 contract (£10 value?) - which is 2 naked units and one covered unit (if I understand correctly).

Cheers
 

be-positive

Well-known member
Dec 26, 2002
4,934
487
93
scotland
#39
No way am I affiliated, just a great site to help traders interested in learning about options, many hours of video footage covering all of the strange named option strategies, their live shows can be over the top with their obsession with food and the cackling ladies slot ,( we will blame the USA for that (lol) but please overlook their obsession and cackling as there are plenty golden nuggets to be learned from T Snosnoff site.
Wishing all a merry xmas and if you are interested in options you have plenty of video footage for 2019
 
Jun 29, 2011
62
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#40
Great trading @Windlesham1

By my reckoning, your Trade 108, left you long very cheap way Out-of-the-Money Jan 6500 Puts and 7300 Calls, which I'm sure you'll make use of, and your Trade 110 made you 31ish for an net debit of 2.5. 110 was open less than a week.
 
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wallstreetwarrior87

Well-known member
Oct 14, 2009
1,288
255
93
#41
Great trading @Windlesham1

By my reckoning, your Trade 108, left you long very cheap way Out-of-the-Money Jan 6500 Puts and 7300 Calls, which I'm sure you'll make use of, and your Trade 110 made you 31ish for an net debit of 2.5. 110 was open less than a week.

Actually I think trade 110 netted Windlesham1 +74.5 pts based on +46 (750 put) and +28.5 for the 3 written puts, based of a closing price of 6673 (if thats the correct close?) If held to expiry.

I may be wrong of course, but hopefully Windlesham1 can clarify?
 

Windlesham1

Active member
Jul 30, 2003
388
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United Kingdom
#42
Trades 105 and 106 again would have made the full 50 if held to expiry. Next up, trade 107 valued at 76 to close out (Thurs 13th) for a small profit of 10. Then, trade108 cost 18 to openand the 6500 Jan put was 69.5, the 7300 jan call-a mighty 2! The strangle, trade 109– currently(Dec 11th) about 24 to close out. It made the max 60.5 at expiry. So trade110 made a whopping 60 at expiry.
 

Windlesham1

Active member
Jul 30, 2003
388
15
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65
United Kingdom
#43
I actually take different trades from the site 70% of the time- I wish I heeded my own advice! I'm so pleased to see people responding positively here, instead of a well known US site where they just snipe at each other. Trading is hard and complicated-if it wasn't there'd be no trading. I wish the forex crowd would get this instead of ploughing in,making themselves ill in the process. There is no downside to learning about options,and I think it should be a part of any trader/investor's armoury. Trade 111 is a christmas tree by the way. Yes-that is a strategy in the options world.