As the week comes to an end there is a lot to reflect upon in regards to the trades that I put on. With Friday’s crazy session finally coming to an end it is time for this weeks Hindsight Trader blog. I am going to go over all of the big trades I put on this week; what worked and what didn’t work and how we can learn from these trades going forward.
All this week I have been singing the same tune, that is, I believe that premiums are too expensive this week. I still believe that the implied volatility is way to high for the move that we will see after the Brexit. In turn I am playing it multiple ways to capture the potential of an IV collapse. I will go over my reasons for each individual trade, and also what the risk/reward is for these as well. Here are the trades
Today’s trading was the epitome of relief rally, as the market gapped higher by more than 1.5%. However, soon after the open the market stalled and we started to see many bearish candles in financials and technology names as they started to give back early morning gains at around noon. At this time, I had the mindset that the market was unlikely to break highs from last week as the momentum does not seem to be there. At the same time, I do not see a reason for the market to pullback much (this week) because it seems that the Brexit will not come to fruition. In the article I will go over how I am trading my prediction and why I chose this strategy over other possibilities.