Wednesday, 6 June 2012

Short Squeeze

The shorts are being squeezed a little in the stock indices. I'm looking for somewhere to re-instate my shorts. I went flat everything last week as I was headed to Ireland for a wedding and would be off line. I missed some opportunities but there has to be some work life balance once you can afford it. We've all had our pedals to the metal when we are starting out and need to get ahead, but there has to be a time when things get back to normal.

I'm working at half speed during summer as I have visitors coming and going here in France and there's so many great things to do.

The option trade came off last week just before I left. As you can see from the risk graph there was a 12% return on my maximum margin. I try and do this 3 or 4 times a month, not always successful and not always 12%. But the losses are usually about 12% too and with an 85% plus win rate the strategy does very well and doesn't need constant monitoring -  a couple of times a day is plenty, usually, and I get email alerts for anything that hits adjustment parameters.

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