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Nasdaq 100 seems to be the most positive of them all.  S&P 500 is a good one for long-term investment.  Wall Street and Germany 30 are the best place to make the most money (or lose the most).  

FTSE 100 is just a horrible mess and Russell 2000 is interesting ... probably good for investing.

Edited by dmedin

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2 minutes ago, dmedin said:

Nasdaq 100 seems to be the most positive of them all.  S&P 500 is a good one for long-term investment.  Wall Street and Germany 30 are the best place to make the most money (or lose the most).  

FTSE 100 is just a horrible mess and Russell 2000 is interesting ... probably good for investing.

I have not studied or traded FTSE before because I always found it to be less popular to US indices and less activity. Just a matter of preference I suppose. The most important question in trading is always "what makes you money". 

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27 minutes ago, HPbrand said:

I have not studied or traded FTSE before because I always found it to be less popular to US indices and less activity. Just a matter of preference I suppose. The most important question in trading is always "what makes you money". 

It just moves in inverse relation to GBP/USD.  Boring really.  The UK economy isn't anywhere near as dynamic as the USA's.  Pays fat dividends though.

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Hi All - brand new here. Anyone regularly trade the ftse?

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4 hours ago, dmedin said:

 

Meanwhile, on the side: Bought a call option on S&P 500 @ 3400 September 2020.  Can't go wrong with that 😄 😄 😄

You will have paid a lot of  time premium  and vol. for that so whats your break even?   Also what is your delta hedging strategy ?  Or are you  short  SP against your call already ?  

Use your option as a pivot.  Look for sell points when RSI o/bought,  then buy back when RSI drops back.   To get options right you have to work hard,,,Options are like rotting fish ...If they start to drift away from you, you have time and price against you.  

Your worst nightmare is a market which drifts lower with volatility dying on you...and time and price... So you need to actively protect your position....

Best of luck 😅

 

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4 hours ago, dmedin said:

Meanwhile, on the side: Bought a call option on S&P 500 @ 3400 September 2020.  Can't go wrong with that 😄 😄 😄

I m guessing your break even must be around SP 3526 or so....  Looking at the IG options page.  .... 

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9 minutes ago, cheviot said:

I m guessing your break even must be around SP 3526 or so....  Looking at the IG options page.  .... 

What?
 

I could close it right now for an enormous £6 profit.🇺🇸🤖

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19 minutes ago, cheviot said:

You will have paid a lot of  time premium  and vol. for that so whats your break even?   Also what is your delta hedging strategy ?  Or are you  short  SP against your call already ?  

Use your option as a pivot.  Look for sell points when RSI o/bought,  then buy back when RSI drops back.   To get options right you have to work hard,,,Options are like rotting fish ...If they start to drift away from you, you have time and price against you.  

Your worst nightmare is a market which drifts lower with volatility dying on you...and time and price... So you need to actively protect your position....

Best of luck 😅

 

 

No need to pivot, swivel, dance on one foot or do a handstand.  Just buy low and sell high.  That's all there is to it 😊

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7 minutes ago, dmedin said:

What?
 

I could close it right now for an enormous £6 profit.🇺🇸🤖

Its not for me to say.....But if you keep your option you need to decide what the range of the market is,, i.e.  SP top has been 3380 .  So you need to sell spot against your call.....If the maket flies upwards out of the range you are covered by your call.....If the market drops you need to hold your short to protect your call option....Its hard work to make it work esp. as you have bought a call at the top end of the market range and with high volatiility, .....

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11 minutes ago, dmedin said:

I could close it right now for an enormous £6 profit.🇺🇸🤖

You still get change after a happy meal from McDonalds. Can't complain there.

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Just now, HPbrand said:

You still get change after a happy meal from McDonalds. Can't complain there.

Exactly - I can even get a McFlurry 😁

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6 minutes ago, dmedin said:

Exactly - I can even get a McFlurry 😁

With sprinckles ?  

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It's not a real 'option' - I think you pay upfront for those and don't get your money back - but it's one way to avoid getting stopped out and truly limit your losses.  I don't know why more people don't use call options?

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43 minutes ago, dmedin said:

It's not a real 'option' - I think you pay upfront for those and don't get your money back - but it's one way to avoid getting stopped out and truly limit your losses.  I don't know why more people don't use call options?

Because they loose money on dying volatility and time.....Yes you limit your downside to the premium you have paid.  You do nt get stopped out they just rot.  

To make really good money on options you need to be prepared to buy/sell well out of the money and gear up from that.    Like buy cable calls at £1.40 strike when cable is at £1.20 , pay 10 pence for them and quintuple your money,  or something like that , or write options where the market is nt...but be prepared to cover those written options with cash futures ....writing options is NOT for the faint hearted..,,,,,

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Isn't it a fairly reasonable bet that the S&P 500 will be at or higher than 3400 in 6 months' time?

238533338_US500_20200214_02_57.thumb.png.4d8aa51adb0de3de46ed785f9c7d2bc1.png

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S&P already made a new all time high today, got a hurry on as it's a bank holiday weekend in the US and can't hang around all day 🙂 may see some selling this afternoon as a 'just in case' play but if the market continues up into the weekend will tell you the bulls are max confident for the near term.

Dax and Dow not far behind, Ftse remains uncertain. 

image.thumb.png.3c26b1738fc8b20100b1193507acddbc.png

image.thumb.png.0a19a8fbcbe372b670b2add6d760c747.png

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3 minutes ago, Caseynotes said:

S&P already made a new all time high today, got a hurry on as it's a bank holiday weekend in the US and can't hang around all day 🙂 may see some selling this afternoon as a 'just in case' play but if the market continues up into the weekend will tell you the bulls are max confident for the near term.

Dax and Dow not far behind, Ftse remains uncertain. 

image.thumb.png.3c26b1738fc8b20100b1193507acddbc.png

image.thumb.png.0a19a8fbcbe372b670b2add6d760c747.png

It looks like another up day but with caution. You are quite right about the afternoon which I am holding back some ammunition for that scenario to play out.

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4 hours ago, dmedin said:

Isn't it a fairly reasonable bet that the S&P 500 will be at or higher than 3400 in 6 months' time?

238533338_US500_20200214_02_57.thumb.png.4d8aa51adb0de3de46ed785f9c7d2bc1.png

If your Option is for S&P 3400 in 6 months, what happens if it hits that level before or after? Do you win or lose?

 

Haven't studied Options...and have no need so far but sounds intriguing.

Edited by HPbrand

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2 hours ago, HPbrand said:

If your Option is for S&P 3400 in 6 months, what happens if it hits that level before or after? Do you win or lose?

 

Haven't studied Options...and have no need so far but sounds intriguing.

You can sell it any time you like.  If you let it expire you lose the deposit (which was about £120 I think).

It's really just a spread bet/CFD made to look like an option but there's no stop loss.

1459947441_US5003400CALL_20200214_10_05.thumb.png.3560f75cc3fe6b9bfa532c7c3870de2f.png

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Ideal for taking long positions on stocks ...

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30 minutes ago, dmedin said:

You can sell it any time you like.  If you let it expire you lose the deposit (which was about £120 I think).

It's really just a spread bet/CFD made to look like an option but there's no stop loss.

What's stopping you opening an infinite number of Options if the only penalty is losing the deposit when it expires? One can set the expiry date far far into the future to be safe. Plus, I assume there is no overnight cost holding the position which immediately is more advantageous over CFD/Spreadbet. 

Edited by HPbrand
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24 minutes ago, HPbrand said:

What's stopping you opening an infinite number of Options if the only penalty is losing the deposit when it expires? One can set the expiry date far far into the future to be safe. Plus, I assume there is no overnight cost holding the position which immediately is more advantageous over CFD/Spreadbet. 

The only limiting factor is the drain of the deposit on your account.  No charges that I'm aware of (but no dividends either).  I especially like that it protects against brief temporary price spikes.

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59 minutes ago, dmedin said:

You can sell it any time you like.  If you let it expire you lose the deposit (which was about £120 I think).

It's really just a spread bet/CFD made to look like an option but there's no stop loss.

1459947441_US5003400CALL_20200214_10_05.thumb.png.3560f75cc3fe6b9bfa532c7c3870de2f.png

You pay 120 for the right to buy at 3400 at expiry, but you can sell it before

Take a look at this😉

https://www.barchart.com/options/strategy-indexes

https://www.barchart.com/stocks/quotes/$CLL/performance?mode=monthly

 

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The deposit is returned when you close the position though ... 🤔

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traded the daily FTSE option today instead of the DFB and to be honest the spread on the option for a daily is too wide. Plus the option price movement lagged the index considerably. Advantage I liked was limited drain on your funds and you know how much you will lose

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Surely the best way to play options on IG is some kind of delta hedging strategy. I guess if you have a long future in profit, instead of using a stop loss, buy a put for the same strike price as your entry level and hedge it that way? Any views?

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42 minutes ago, dmedin said:

The deposit is returned when you close the position though ... 🤔

Not an IG option....or any market option.   You loose it all if , you hold to the end and its out of the money.   You can close it before expiry any time...It ll be worth what the market is at the time you sell it.....

Say your option expires today at 12 noon.  Your call is SP 500 at 3400.....The spot market is 3383 say.....You loose the lot !!!   That is why your break even is :

The call price i,e, 3400 + the premium you have paid ...I think around 127 or so.  It expires on 18 th Sept 2020.   So on the day you need the market to be 3400+127= 3527...... Thats just to break even.....

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