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[ 25 Feb 2010 | 3 Comments | ]

Taking advantage of the fact that all ETFs perform very poorly in comparison with their underlying, we are going to sell one ETF that replicates the reverse SP500. The SPXU.
If the SP500 goes down, the SPXU would go up and this would work against our strategy. In order to avoid this problem, we will cover this operation by selling one mini SP500 future.
The bargain would look as follows:
1 mini SP500 future sold
500 shares of SPXU sold
Then, we just reap the benefits and do whatever we want
The following graphic shows the …

B. D. D. - Database, English »

[ 21 Sep 2009 | No Comment | ]

Instrucciones en español
A Three Dimentional Data table TD3D, is an original and practical way to convey miscellaneous information of products and instruments on one single screen. As we will see now, the possibilities of combining information from various sources on a table are practically limitless.
Let us see some examples:
To view prices of all options and all dates of expiry and all exercise prices for any underlying value at a glance.
 To follow price fluctuations of any product during the last sessions prior to their expiry date, and the price movements of …

English »

[ 27 Jul 2009 | One Comment | ]

I am aware that it is no easy task to multiply the money one hundred times, but I am eager to try.
As anyone can guess, the only possible strategy to convert yens into dollars is a seeding system: Reinvesting the benefits from a series of successful operations. And this is precisely what I am going to attempt, and everyone is invited to follow the whole process through this blog.
This challenge will comply with the following rules:
Today I will recommend an operation that involves a maximum risk of 100.000 Yens. From …

English »

[ 3 Jul 2009 | No Comment | ]

Many are convinced that the relation between Put and Call can give some clues over the possible market tops and bottoms. This seems logical on principle, but the method used to handle that information is not the right one.
When looking at each one of the two types of options, we cannot tell how many such contracts are net purchases by small traders satisfied by the market makers and how many of the options sold were bought previously.
This is the same as the contract options traded to cover long or short …

English »

[ 18 May 2009 | No Comment | ]

There is a Calendar Spread for General Motors with call options where it is possible to loose a small amount of money or earn a lot. Logically, in order to win it is desirable that General Motors waits to go bankrupt at least a couple of months.
It is quite reasonable that this will not happen in two months, since it has been proposed a swap of debt for shares at a rate of 225 shares of General Motors which yesterday closed at 1.15 dollars for every $ 1000 nominal par …

English »

[ 12 May 2009 | 2 Comments | ]

The three charts below show that the BUND (10 Year German Bond) has confirmed a double top pattern breaking the last low, the BOBL (5 Year German Bond) is close to confirm a head and shoulders pattern by breaking its neckline and finally the SCHATZ (2 Year German Bond) is still near the top and far from the breaking area.
This is a logical situation, because the remaining life of each bond acts as a kind of leverage that pushes it to produce stronger percentage movements. The first one breaking must …

English »

[ 9 May 2009 | 8 Comments | ]

Below is shown the first and very simple example of a spread chart, to little by little catch the interest. This example is important to understand the mechanism of a spread and to “digest” this theory. It is not posted with the intention to operate with it tomorrow.
This case tries to clarify the concept of applying a certain factor to each underlying to make the spread.
This first example it shows a spread between one contract of the DAX and four contracts of the EUROSTOXX50. This is an attempt that the …

English »

[ 8 May 2009 | One Comment | ]

 
The spread charts have lots of advantages, compared to the usual trading products.  Its use is completely unknown in the world, though lately its been trying to introduce what is called “relative value pairs” trading, but this way of operating is as far from the professional use of spread charts as the difference in the quality of a musical beat played with a hollow trunk and the most sublime Mozart symphony.
 
 The new generation of spread charts provides a more professional approach to the technical analysis adding immense potential in some …