Optos Share Discussion Threads

[alphorn] 07/10/2016 20:40

Hi Praipus. Thx. I shall give it more thought and write when back from holidays. In a nutshell I moved a lot out of sterling into non GDP assets in the spot market. Will think of using options to lock some gains.

[praipus] 06/10/2016 16:57

Yes, not sure I can help but willing to try.

[alphorn] 05/10/2016 22:59

Anybody about? I need some input regarding fixing forex gains. None of the original band on the other thread.

[alphorn] 04/10/2016 18:31

Maybe, it is a trade that I may do to lock in my GBP gains before year end.

[chinahere] 04/10/2016 17:59

I don't know how to write these but I do think that the Euro will come under pressure in the fullness of time.......

[sweeney] 04/10/2016 15:40

Anyone still writing options out there?

[alphorn] 17/6/2016 16:06

Anybody have naked calls for today? As near a certainty as you can get - opened up months ago - full gains today. It is extremely rare that you know in advance so precisely when the uncertainty will build.
As close to guaranteed returns that I have seen over the years.

[piano man] 30/3/2016 22:29

Chatities Aid closed.

[stavros28] 26/3/2016 15:43

Most ETF products are based on the Futures contracts which trade 24/7 so reflect the overnight move but also have a drag effect in certain circumstances.

eg Oil, USO (ETF) dropped 57% along with the Futures contract but when crude rose off the bottom , 39% the USO (ETF) only increased 27% because the price in the futures contract was in contango ( a drag effect which chips away at the ETF value).

So the answer to your question, they are not a buy and hold product and have to be actively managed.

Stavros...

[praipus] 26/3/2016 13:05

Some do, I've had the same problem. However some DBX trackers adjust as if adding interest overnight, you will have to read the fact sheet. I've had a quick look but cant find one for ProShares DOG.

Got it...



Yep you'd have to watch it daily, could work in your favour on big days in the right directions.

Still might be better to do it with options.

[barvin] 26/3/2016 12:51

Does this ETF reset daily? there was a nice ETF I saw a while back called SUK2 that wss x3 FTSE that I hoped I could buy and hold. But apparantly it resets daily and doesn't work as a buy and hold option.

[praipus] 24/3/2016 22:36

Alternatively you could look at the short ETF for the DJ AMEX:DOG i think. Place your order/s to buy in the market and just wait. No cost till the limit is hit. Loss limited to the amount you invest.

ETF v Futures list


"DJ" Dow Jones 30 DJIA Short ETF



Options in the DJ future


Options on the DJ ETF

[barvin] 24/3/2016 22:01

On my post #741, surprised there isn't any easy way to do this with a fixed loss. Even on the trade2win forum no-one seems to have a real solution to this type of trade either.

hxxp://www.trade2win.com/boards/indices/213920-best-way-short-markets-longterm.html

[praipus] 24/3/2016 18:05

Screen says about £55 to sell but its Options on a DOW ETF Open Interest circa 500. No idea of depth. Intrinsic value, the market would have to make a big move for the options to go in the money. Its funny how these things suddenly look expensive or at least well priced. Is it better to look closer to the money?

[thetatrader] 24/3/2016 17:39

Chances are high that you wouldn't need to hold the Puts till expiry.
If the DJ30 were to fall a couple of thousand points, fairly quickly, then the increase in Implied Volatility would increase the Puts value many times.

Increase in IV has a huge effect on Option prices.

That's why it's NOT a good idea to sell that far out. You could be taken out before expiry by the increase in margin requirement.

(I've got the Tee Shirt on that one!)

DYOR

[chinahere] 24/3/2016 16:56

That's the kind of doomsday bet I like too. But I'm so green at this that I don't know what the £1000 would make you.

Praipus you say £60 for January 2017. How many could you sell at that price?

[praipus] 23/3/2016 22:47

Put options would limit your down side. DOW 10,000 strike are about £60 for Jan 2017 expiry. Interesting idea.

[barvin] 23/3/2016 21:39

If I was prepared to stake and lose £1k max on my view that the Dow Jones will be below 10000 by the end of 2017. What would be the best spread betting option to do this?

It would be ideal to place the order and set and forget. If it pays off, great if not I don't mind losing the £1k.

So on the upside, I would go for £10 per point(£1,000) with a max of 18,500 on the Dow Jones. On the down side if it did reach 10,000 I would be £8k up.

Any ideas on the most suitable option?

[praipus] 23/3/2016 21:27

Ok correct URL

[praipus] 23/3/2016 19:06

Hi tpaulbeaumont, do you still trade options? Any particular war stories or strategy?

--------

Walbrook Capital seem to have usurped FXCM and I now get the following message


"The owner of phoenix.fxcmstocktrading.com has configured their website improperly. To protect your information from being stolen, Firefox has not connected to this website."

[alphorn] 19/3/2016 14:21

For info:

"FXCM Securities rebranded as Walbrook Capital Markets following AS Expobank acquisition

I am pleased to confirm the acquisition of FXCM Securities by AS Expobank. Approval has been granted by the FCA and the transaction has now been completed. The business has been renamed and rebranded as Walbrook Capital Markets Limited".

[tpaulbeaumont] 12/3/2016 13:14

stavros - fair play, I was with gni/old mutual/refco/mfglobal and there were warnings at the time, i took everything out the day prior so didnt have all my details published in that ludicrous lapse in management, do you recall that :) did you also post on tacticaltrader back in the day?

[praipus] 06/3/2016 16:33

You might gain from browsing post #1 where I try to keep an index to subjects mentioned. There are a few posts on option brokers.

Sorry I missed your previous post on Open interest and stake holding (account size).

Open interest: Yes it can be an issue if you are buying out of the money options and or your market expectation doesn't materialise.

Account size: I suspect four times premium if writing options is typical. If long only then much less required, just the premium will do. Though if you have a reasonable reserve of cash or stock you have more optionality to scale in or exercise at will.

[chinahere] 06/3/2016 15:59

Thanks Praipus - I'm getting there with it.

I think I'll have to try a demo account or something similar.