FTSE 6000 by the New Year?
Discussion
If it hits 6000, rationale would say go short as the up side of another 3 to 5% is small compared with possible downside.
The other view is that money has no where else to go but all it takes is a wobble on the Fiscal Cliff or Europe and it could fall 15%, no doubt recovering.
Surely the answer must be stock specific to see an gains long from 6000.
Just my view
The other view is that money has no where else to go but all it takes is a wobble on the Fiscal Cliff or Europe and it could fall 15%, no doubt recovering.
Surely the answer must be stock specific to see an gains long from 6000.
Just my view
What do you mean by "punt"? A binary bet? A long position on the index?
In my opinion, it needs to close above 5933ish, which is the top of the recent levels of strong resistance to get to 6000. Of course it may not do even with a close above, but as long as you manage you risk and plan the trade, then it doesn't matter.
December traditionally finishes higher than it starts. People give it the name 'a Santa rally', which is apparently helped by typically lower volumes.
In my opinion, it needs to close above 5933ish, which is the top of the recent levels of strong resistance to get to 6000. Of course it may not do even with a close above, but as long as you manage you risk and plan the trade, then it doesn't matter.
December traditionally finishes higher than it starts. People give it the name 'a Santa rally', which is apparently helped by typically lower volumes.
sideways sid said:
Upside seems limited right now; I suspect a more fruitful trade would be to wait until the next indication of a turning point & short it back down.
I sold Dec 6050 Calls so am hoping FTSE stays below that for 10 days.
Nice what % premium did you get and when did you sell them?I sold Dec 6050 Calls so am hoping FTSE stays below that for 10 days.
Im guessing you have to pay the difference if someone exercises the calls?
Im interested in what sort of % premium is available for this kind of options trading. Do you have to leverage f
k out of it to get anything reasonable? Or do you take the odd chip here and there. (Im guessing the later is more sensible)I sold for 36 in October & usually aim for 0.5% to 1% ungeared extra income on a portfolio per month.
I'm also long on FTSE100 but expecting to. take profit & open a short position in the next few days. At that time, I'll probably sell Feb calls. if that happened today I would sell Feb6100 calls at c.38p
I'm also long on FTSE100 but expecting to. take profit & open a short position in the next few days. At that time, I'll probably sell Feb calls. if that happened today I would sell Feb6100 calls at c.38p
Singh911 said:
Does anyone here sell options regularly. Would be interested to chat if so, i have been selling the wings on DOTM options on the S&P for a number of years, uncovered - and think its a good way of making excellent returns.
cheers
Two sayings...cheers
Eats like a bird, s
ts like an elephant.Picking up pennies in front of steam rollers.
Both describe sellers of the wings...
Singh911 said:
Yeah thats been said. not sure how many that say it have tried it. Everyone's trading style, execution, temperament, fund etc is different, often a reflection of your own personality. Each to their own.
Sure, small premiums and unlimited downside, great payoff profile. And is not trading, its just punting.I know there's a bit of debate as to whther technical analysis works or not... but do support/resistance levels work with indices as well as individual stocks? I can understand why it may work for individual stocks, but surely an amalgamation of different stocks such as in an indice where the 100 stocks overall move differently with different weightings of each stock. Why should that work?
They work extremely well with the FTSE. Very simple technical patterns repeat themselves frequently on different time frame s e.g. double tops / double bottoms. Previous key levels work well too.
I'm long from when we broke back and held above the 5933 area yesterday. My target is 6000 (stop originally 5890). Taken 50% profit off @ 70 just now and stop to break even so I really don't care what happens (not that I didn't anyway).
I am likely to short from 6000 although it's so obvious I'll probably run a smaller position with a 30 point stop as it looks to me like the next level up is 6021 ish.
We'll see what happens.
I'm long from when we broke back and held above the 5933 area yesterday. My target is 6000 (stop originally 5890). Taken 50% profit off @ 70 just now and stop to break even so I really don't care what happens (not that I didn't anyway).
I am likely to short from 6000 although it's so obvious I'll probably run a smaller position with a 30 point stop as it looks to me like the next level up is 6021 ish.
We'll see what happens.
DSLiverpool said:
What a ride we are on, keeps climbing.
In reality it defies logic we are all still in the st but their are no investmet options apart from the market and houses - how long and far can this thing go?
Not quite, the average P/E is some 15 so neither cheap nor expensive.In reality it defies logic we are all still in the s
t but their are no investmet options apart from the market and houses - how long and far can this thing go?Gassing Station | Finance | Top of Page | What's New | My Stuff