How to improve at trade pitches
I've got an offer for S&T summer internship at a BB next summer, I feel I am strong with the market dynamics (what happens to XYZ when ABC etc) and and I keep up to date with what's going on in the markets, but I feel like I'm not good at pitching my own ideas. End of the day everything feels priced in, and its hard to find ideas of my own to begin with. I've decided to put some effort into trying to practice trade pitches, I'll try to do a pitch a week, and was wondering if you guys had any advice for me. I know its a big part of being an intern on S&T so its something I want to improve.
If your wondering what my pitch would be for this week, its to long volatility in UK Gilts. The reason is I think despite rates slowly declining with the introduction of the new PM, Andy Burnham, this is more a result of oil prices falling back to pre war levels easing inflation concerns and rate hike risks, and is providing a false sense of security, since Burnham wants to cut income tax by raising the threshold whilst hiking capital gains, which could have unexplored impacts on the UKs fiscal position. Burnham is also yet to name his finance minister. At the same time, the BoE rate path still seems uncertain, with a 50% chance of rate hike priced in by November, there is a two sided rate risk, fiscal concerns could raise rates whilst easing inflation and weaker consumer activity could push rates lower. My recommendation therefore is to long straddle, buy ATM call and put options on 10yr UK Gilts, profiting from large price changes and increased implied volatility, whilst at the risk of theta decay, on a 3-6 month timespan.
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