Registered Members Login:
   
Forgotten Your Details? Click Here To Recover +
Welcome To The ShareCafe Community - Talk Shares And Take Stock With Smart Investors - New Here? Click To Register >

1563 Pages (Click to Jump) V   1 2 3 4 > »    
 
  
Reply to this topic

Index Trading, xjo, dow, dax, ftse
early birds
post Posted: Jan 16 2019, 06:31 PM
  Quote Post


Posts: 12,256
Thanks: 1288


In Reply To: Mork's post @ Jan 16 2019, 05:10 PM

thanks mork try to answer me.

but my question is..... can they close this trade before December 18, 2020, when SP droped to 2100 this year?? if it's option then they can trade it any time when market opens
so before it hit 34% drop{ in that case they gonna lose over $5b }, it will go through 2100 first. if they be able to trade it any time then they can't lose if market goes down from here, or market keeps going up from here on then they will lose big time witch they didn't mention it at all?? that was the part that confused hell out of me?? unsure.gif
thought it might be a special warrent {set for special date, and strike price}. not sure what is it.
ps, i'm not really good with options and warrents. so thanks mork anyway. really appreciated your input! tongue.gif





 
Mork
post Posted: Jan 16 2019, 05:10 PM
  Quote Post


Posts: 306
Thanks: 45


In Reply To: early birds's post @ Jan 16 2019, 03:51 PM

Hi eb,

Most professional option traders delta hedge there positions when they sell options. This means there would be some sort of offsetting position in the the futures market. In this case they would be short SP500 contracts at the same time.

The strategy usually means they would be 50% hedge in futures when the market is at the strike price of 2,100. This would be rebalanced over time so they sell more futures as a hedge if the market falls and cover their futures position as the market rises.

Most times these guys are really trading volatility - current volatility is lower based on the vix at present so some of the position could probably be successfully hedged by buying out of the money puts with a lower implied volatility.

Its hard to exactly know because there are different strategies, but it would be extremely unlikely that the position would not have some sort of hedge in place.


Said 'Thanks' for this post: early birds  nipper  
 
early birds
post Posted: Jan 16 2019, 03:51 PM
  Quote Post


Posts: 12,256
Thanks: 1288


https://www.msn.com/en-au/money/markets/a-m...hlxR?li=AAgfOd8

The trader sold 19,000 put options on the benchmark that would obligate them to buy the index at 2,100 on December 18, 2020,Reuters reported on Monday, citing data from the options-analytics firm Trade Alert. The S&P 500 opened at 2,586.18 on Tuesday.

It could be a winning bet to the tune of about $US175 million, as long as the index doesn't drop more than 22% from Monday's closing level of 2,582 by that date.

But if the S&P 500 goes the wrong way, the trader may stand to lose up to half a billion dollars.

For example, if the index were to drop 34% by December 18, 2020, the losses could amount to about $US558 million, Reuters said, citing a Refinitiv analysis.
===================

unsure.gif unsure.gif
can this trade be closed before that final date?? if it's option then it should be able to do it. but if it's some kinda special warren ....emmm
can someone explain to me here??? unsure.gif




Said 'Thanks' for this post: nipper  
 
early birds
post Posted: Jan 11 2019, 09:38 AM
  Quote Post


Posts: 12,256
Thanks: 1288


it is Friday

and market is fully fact in the US VS CHINA trade deals get done.
time to lightening up i guess....if one had over weight market.




Said 'Thanks' for this post: nipper  
 
early birds
post Posted: Jan 4 2019, 10:16 AM
  Quote Post


Posts: 12,256
Thanks: 1288


In Reply To: early birds's post @ Dec 22 2018, 10:41 AM

asx200

short term it has to hold 5525 then a sizeable bounce is on the card

for longer term investors-----5400 is the last level for the uptrend line. if that point falls then bulls can forget about market for a year or two. weirdsmiley.gif



 
early birds
post Posted: Dec 22 2018, 10:41 AM
  Quote Post


Posts: 12,256
Thanks: 1288


In Reply To: early birds's post @ Dec 20 2018, 09:56 AM

take loss for me again seems to be the case at year end!!!!

https://www.cnbc.com/2018/12/21/us-stocks-s...down-fears.html

Dow dives 400 points to end its worst week in 10 years.............

===============

finally , a woooogeeee mama for the bulls!



 


early birds
post Posted: Dec 20 2018, 09:56 AM
  Quote Post


Posts: 12,256
Thanks: 1288


In Reply To: early birds's post @ Dec 18 2018, 08:27 AM

another wild swings from US market over night.
i reckon people spooked by Fed chair signaling to keep shrink it's bloomed balance sheet.......ugly as it is. but US market is way over performed rest of world last few years.

for asx200 i have to stay on the course think the local fundies will push asx200 to above 5600 before x-mas!!



 
early birds
post Posted: Dec 18 2018, 08:27 AM
  Quote Post


Posts: 12,256
Thanks: 1288


In Reply To: early birds's post @ Dec 17 2018, 02:47 PM

just thought the local fundies gonna ring the x-mas bell, then Dow drops another 500 points over night.

seems i have take some loss that i got it from yesterday!! weirdsmiley.gif

asx200, still think 5600 will be fight over before x-mas, imho though!!




Said 'Thanks' for this post: nipper  
 
early birds
post Posted: Dec 17 2018, 02:47 PM
  Quote Post


Posts: 12,256
Thanks: 1288


In Reply To: early birds's post @ Dec 17 2018, 09:30 AM

for asx200, seems 2600 become battle ground, i guess fundies will try their hands for the sac of their bonus !!

=======================

ha, they just did that as asx200 is over 5650 as i type ....... keep pumping it!!



 
nipper
post Posted: Dec 17 2018, 09:43 AM
  Quote Post


Posts: 5,127
Thanks: 1899


In Reply To: early birds's post @ Dec 17 2018, 09:30 AM

try Contact Admin, n tell em of your issue(s) ....new management, on ShareCafe, might be some tech issues migrating the board's over?



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


1563 Pages (Click to Jump) V   1 2 3 4 > » 

Back To Top Of Page
Reply to this topic


You agree through the use of ShareCafe, that you understand and accept the TERMS OF USE.


TERMS OF USE  -  CONTACT ADMIN  -  ADVERTISING