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UK SHARES SECTION

84% Chance Of Mega Volatility Over The Next 2 Weeks

Posted: Friday 4 November 2005 - UK Shares Section

Our computer has just spat out another forecast - expect a big move in the stockmarkets over the next 1-2 weeks. In a situation like this a direction is never given so we're just going to buy strength or short weakness.

Of course another way to play it would be to buy an option straddle or strangle but time value works heavily against the buyer of this type of strategy so it's best to do a 'smash and grab' type trade. That being, don't overstay you're welcome and if nothing has happened in say a week, dump 50% of your position and the other 50% the following week.

Remember time never goes as quick as when you're long option premium.

The move will start in the US so keep a close eye on that market which at present is slightly higher (Dow +30).


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