£1 a point, £80 risk trade on Wall St

[trade247]

god knows which way it's going to go. But i'm happy to risk £80.30 on a trade like this.

buying a daily call at 28100 strike so making money if wall street settled above 28180.3

in a market like this who knows what gonna happen so it's all you can do. lets see where it settles.

 

[dmedin]

FWIW I believe (hope) Wall Street gets much lower

[trade247]

oh this is a straight punt and hope for the best. Downside move is likely to be less than upside I would think, and buying an option is max risk of the premium so won't get stopped out.

can hold until 9pm , and only need a 120 point or 0.4% move up to make money. which I feel isn't much.

Plus only 80 quid to get into the trade rather than 5% which is 1400 on a regular spread bet.

[trade247]

update: wall street getting slammed!

the 28100 strike is now at 27/33, however I'm only 47 quid down right now.

If I was trading £1 on wall street spread bet i'd be £230

[trade247]

36 minutes ago, dmedin said:

FWIW I believe (hope) Wall Street gets much lower

you could be trading this then  £80 risk

ALSO

look at the PUT 27900 in the original image when it was at 50, now it's at 150. Triple your risk money in the first hour of trading, with only £50 maximum risk (and 150 profit now - not looking at spread either).  

power of options hey.

[dmedin]

7 minutes ago, trade247 said:

power of options hey.

IG say there isn't enough demand for more options but how can we register demand?  Options on all the commodities, indices, FX pairs and even stocks would be awesome and generate more business.  I see they have cr@ppy ones like the Swedish stock market lol.

Edited February 25, 2020 by dmedin

[trade247]

1 minute ago, dmedin said:

IG say there isn't enough demand for more options but how can we register demand?  Options on all the commodities, indices, FX pairs and even stocks would be awesome and generate more business.  I see they have cr@ppy ones like the Swedish stock market lol.

trade them I would guess? obviously they can see all the volumes so an increase in volume probably shows increase demand.

there are all the big boys tho, FTSE, dow, DAX, euro dollar and other major FX. Oil and gold, but yes they are looking a little thin there.

[dmedin]

Was just looking at the Swedish listings and I do recognize a few there.

Need options on coffee, gas, softs, cocoa, all the good stuff.  Why the heck not?

I can see the potential issue for no options for stocks because of the potential complexity (why not integrate this with existing stock listings instead of putting it in the options list, e.g. as well as offering cash and futures on stocks offer options in the drop down list too and tie it in that way) but not for commodities, all the indices and major FX pairs.

[Bopperz]

That was a nasty move down wasn't it! All in 30 minutes, blink and you'll miss it.

[trade247]

update. my punt is now basically worthless.

positives

• im down ONLY 80 quid, not 495 which the market has **** off today since 2.30  
• it's only Tuesday

 

that 27900 PUT, if you had traded it on the outset (basically the same trade but the other direction) you would be £250 up. So good job if anyone did that  my fee is only 10%  

happy trading folks. Manage that risk it a mad market right now.

will try and update later.

[trade247]

Just now, Bopperz said:

That was a nasty move down wasn't it! All in 30 minutes, blink and you'll miss it.

fortunes to be made and lost today my friend

whats your trade?

[dmedin]

1 minute ago, trade247 said:

will try and update later.

Thanks for your efforts and I totally agree that options are a great strat

[Bopperz]

1 minute ago, trade247 said:

fortunes to be made and lost today my friend

whats your trade?

I am currently long BooHoo, so I was checking out a short FTSE this morning to try and protect that. FTSE was at 7100 ish and I thought maybe the worst had passed. So I didnt do anything. Regretting that now.

[Bopperz]

Anyone got any ideas why everything moved so suddenly?

[Guest initialatom]

17 minutes ago, Bopperz said:

Anyone got any ideas why everything moved so suddenly?

Probably the comments from WHO's Aylward: "coronavirus is a rapidly escalating epidemic in most places..."

[trade247]

I also imagine lots of people trying to trade the swing (bUt tHe DoW hAs HarDly EvER hAd a gAp DoWn aNd ThEn nOt rAlLiEd) but have then been caught out and had to sell to close didn't help.

and the mom and pops selling on the open

 

and

 

 

Edited February 25, 2020 by trade247

[dmedin]

48 minutes ago, trade247 said:

my punt is now basically worthless.

There's an outside chance you could make money though, great thing about an option.  Warren Buffett could be poised to spend his $120 billion any minute now

[dmedin]

3 minutes ago, trade247 said:

(bUt tHe DoW hAs HarDly EvER hAd a gAp DoWn aNd ThEn nOt rAlLiEd)

😮 Yes, previous downward moves of this magnitude in recent history have been V shaped 😮

[trade247]

2 minutes ago, dmedin said:

There's an outside chance you could make money though, great thing about an option.  Warren Buffett could be poised to spend his $120 billion any minute now

true. scores on the doors before I think about going home are....

The call I actually bought (and the put I should have bought  )

[trade247]

to put into perspective … whose up for catching a falling knife?

[dmedin]

I had open longs last night, lost a fair bit.  Will have to close open positions before going to bed!

[trade247]

my trade is so far gone you have to laugh - look ho many worthless options above me 28100 strike - its unreal. At 7.30pm we're looking like this.

That 27900 put though is storming at 780 points (up from 50!). Bet of 50 quid for a 15.6x increase. I (would have) like(d) those returns.

BUT im staying optimistic. Risk has been managed on a crazy crazy day.

[trade247]

on mobile so wont screenshot 

but that 27900 is at 820, seven minutes before the close. Good job if anyone traded it. 

meanwhile I'm only 80 quid down which given the move.... I can live with

[Guest Phil]

Thanks for sharing this it was an interesting read 

[Guest Akshal trder]

So you could have also bought the call and the put and sssume that there was going to be movement but don’t know what way

like a huge out the money strangle 

[trade247]

10 hours ago, Guest Akshal trder said:

So you could have also bought the call and the put and sssume that there was going to be movement but don’t know what way

like a huge out the money strangle 

yes you could have done this as well

your max risk would have been the 80 and the 50 = 130 quid total, and the NET profit would have been the 820 profit on the put, minus the 130, so NET PROFIT of 690 quid on a 130 quid risk. Not bad.

[trade247]

Would anyone find it useful if they post their market and the direction and I put an option to it...? NOT ADVICE!!!! Just may be interesting 

[Kodiak]

Bought one of each

On demo😁

Where is the limit order😉

[Bopperz]

Implied Vols on the FTSE are looking a lot better today. Low 60's rather than >100%!

Ive just picked up a long strangle, as I'm sure there will be a big move today. My hunch is on down, when we realise monetary stimulus still requires people to be at work, rather than in quarantine. 

[dmedin]

6 minutes ago, Bopperz said:

Implied Vols on the FTSE are looking a lot better today. Low 60's rather than >100%!

Ive just picked up a long strangle, as I'm sure there will be a big move today. My hunch is on down, when we realise monetary stimulus still requires people to be at work, rather than in quarantine. 

It depends ... people doing productive jobs yes.  Office workers (so pretty much anyone outside China) not so much.  Those are just 'jobs for the sake of jobs'.   Endless meetings and talking cr@p which they can do from home