Bull against bear

Financial markets, macro economics, politics and everything else concerning the global markets. The writer is a long time investment banking operative in the nordic markets. The blog is usually updated once a week with specific trading advice. On a monthly basis, the goal is to provide a strategy update. In addition to that, there will be posts of more general content, housing bubbles, investment strategies and more.

November 6, 2012

Weekly update 11/6

I would recommend using an election squeeze to light up on longs. Also, those sold puts are moving towards 0. I would not stress about hedging that position, rather selling some calls on the squeeze depending on how vol moves post elections. Selling calls and buying puts is the more aggressive trade. I believe we have a sideways consolidating market with a bias towards the downside as time progresses. Therefore selling vol strike november and buying vol strike december could be the best strategy.

I also recommend creating long short portfolios, shorting weak technology names and going long index. Oil and copper also looks like a good shorts on this squeeze.

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