Strike at 1.5660, breakeven at 1.5506and premium is 149bps.
61.8% ~ 1.5751
50% ~ 1.5587
38.2% ~ 1.5424, difference is 82bps and payout is 0.55X
0% ~ 1.4894, difference is 612bps and payout is 4.1X
Daily Archives: June 14th, 2013
Option expiring 15 July or 15 August.
1 month; Strike 0.9600, Breakeven 0.9715, premium payable is 115bps.
38% target at 1.0027, difference is 312bps, payout is 2.7X.
50% target at 1.0137, difference is 422bps, payout is 3.67X
2 months; Srike 0.9600, Breakeven 0.9785, premium payable is 185bps.
38% target at 1.0027, difference is 242bps and payout is 1.30X
50% target at 1.0137, difference is 352bps and payout is 1.90X.
Tenure: 1 month expiring 15 July 2013.
Strike 94.90, BE 96.79, premium is 1.89
Target; 100.38, difference is 3.59 or payout ration of 1.89X.
Looks good, need to consider quickly and execute the trade.
EURUSD
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The EURUSD is currently trading above the 61.8% level of 1.3321, the 76.4% is at 1.3437 and the 100% is at 1.3640 established on 1 February 2013.
Last night’s high was at 1.3385and the low was at 1.3282.
GBPUSD
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The GBPUSD is presently trading above the 61.8% level of 1.5754 with the 76.4% at 1.5957 and the 100% at 1.686 established on 21 December 2013
Last night’s high was at 1.5723 and the low was at 1.5650.
AUDUSD
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The AUD is a currency that really begs to be thrashed. The current spot is trading below the 0% level of 0.9671, the 23.6% is at 0.9891, 38.2% is at 1.0027 and the 50% at 1.0137. How much will it take to drive the AUDUSD to the 50% level, I don’t think alot. Home loans is down, consumer sentiment is down, however, employment is up and unemployment is down.
Let’s look at this more closely.
My hunch tells me that there is opportunity in the following: –
Call option on the AUDUSD
Call option on the USDJPY
Put option on the GBPUSD
Right now, we need to do a cost benefit analysis to determine which strategy is cost efficient and profit effective.
The Panthenon Investment Group 