Thursday, 13 December 2007

Closing out the FTSE Option Trade

Just covered the 2 FTSE Options I traded 2 days ago. P+L was $2,381.

I had sold £5/point of a Feb 6400 Call at 348 which I bought back at 256.9.
I had bought £20/point of a Feb 6100 Put at 87.1 which I sold back at 122.8.

FTSE had a big fall today, 2.5%, and I am happy to close this out and want to enter into a similar trade on the DOW. Plus, every time the FTSE seems to have a big fall, it just comes roaring back the next day. Until the market feels like it has firmly become bearish, I think a "buy the dips" strategy is the right one.

5y Day Chart of FTSE



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