You now have a good experience of ClickOptions products, could you give us your point of view concerning their strenghs and weaknesses?

The click-options must be compared to high potential value assets, like Monep options or warrants. In the first place, what I appreciate most is that ClickOptions are priced continuously and during all the product life cycle: whenever buying a ClickOptions, I have no doubt on the possibility to sell it back when I need to. On the contrary, on listed options markets, market liquidity constraints can be a strain and have to be accounted.

In second place, I appreciate the fact that the spread is fixed all along the products life cycle: it?s also a guarantee on the selling conditions, whereas with warrants, I often have to undergo growing spread as seen on March 11.

The 3rd big advantage of ClickOptions is the variety of product types. For a warrant, I have the feeling that « everything is in everything »: the variation of the underlying asset, its volatility and the decrease of time value. With ClickOptions, I can define 2 types of strategies: I play with time values during several days with deactivating products (Stay-Lo, Tunnel...) and I play with the market volatility in intraday with the impulse products (Move-Hi, Finish-Hi...).
Finally I particularly appreciate the products reactivity which is always adapted to market context and constitute a big lever effect allowing us to exploit the impulses in intraday: for 1% of impulsion, we win more than 40% on a Move-Hi/Move-Lo whose price was 40€ and maturity 4 weeks.

Moreover, can you tell us the type of strategies that you apply in intraday?

First, I rely on the technical analysis to choose the underlying assets to oversee and to precise my anticipation, hence choosing the product type with which I will intervene. Next, from 9h10, I oversee the evolution of these underlying assets as well as the intraday values rating (top/flop). As soon as the expected impulsion happens, I buy the products. From there on; I check my position every 10 minutes and sell back at the right moment. If I figure out that I have been too quick and that the sell impulsion delays in happening, I prefer going out before 17h30 rather than waiting and losing time values, and maybe attempt the same impulsion the next day (with the same product or another emitted in the morning). In intraday, I aim purchasing between 30€ and 40€ and selling around 60€.

More generally, what is your system of trading on ClickOptions?

Well, now I only deal on ClickOptions... When buying, I impose myself a minimum price of 20€ and a maximum price of 80€ (more precisely 30€ on the activating products and 50€ on the deactivating ones). Beyond 65? at purchase, apart a few exceptions, I find that yield / risks ratio is insufficient considering my exit rules.

When selling, I apply 2 rules on the product and 2 rules on the underlying.

• I sell every product that reaches 80€.
• I sell every product that, after gaining 30%, doesn't gain more than another 10% (psychologically, this last gain covers the spread of my next purchase).
• I sell a product if its underlying reaches (or stabilise around) the target level of the technical analysis.
• I sell the product if its underlying reaches (or stagnates around) the invalidation level of the technical analysis.

You say you rely on the technical analysis to define your anticipation. Could you be more specific on which theory you prefer and why?

At DayByDay we use all the main theories on all the assets that we follow (more than 800) : chartism, candlesticks, Elliott and Gann theories, technical informers and especially volatility indicators such as the Bollinger bands and therefore the ATDMF.
Even if some of these theories are fascinating, I do not find them always adapted to short term trading : for example, the ATDMF demands looking at 4 different horizons of times; on the Elliott waves, the stop levels remain fuzzy and the process is rather slow. Therefore I use them for general interpretation of rates, but my real decisions are taken on charts analysis. These analyses actually are those published on the ClickOptions web site.

18/03/2004

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