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I bought a 2 week call option on the USDJPY at the strike of 94.15 and breakeven of 95.86, that is, 1.71bps for the cost of the premium which is pretty expensive as volatility was high.  However, my technical analysis plus the news out of Japan and Abenomics, I was confident that the yen would weaken.

I bought back the option on the last day at 0.9750 for a nice trading profit of 16.8%.

9 Comments

  1. Where did you buy the options from? Are they exchange traded options or over-the-counter?

    Any assistance to the query will be greatly appreciated.

    Thank you.

    Trader’s Torch

    • Hi Trader’s Torch,

      Apologies for the tardy reply.

      My trading firm, The Panthenon Group useses Goldman Sachs and UBS as our trading banks. In other words, we are institutional clients of both Goldman Sachs and UBS, so all our FX spot trading and FX options are done through these two banks.

      The options are OTC, we do not do any exchange traded options.

      Regards,

      Dr. Andrew Chew

      • Thank you for your reply, Dr Chew. It’s greatly appreciated. Wish you the very best with your business. Thank you.

        Trader’s Torch

      • Hi Traders Torch,

        Are you from James Cook University? Are you a teaching staff or a student at the university?

        Warmest Regards,

        Dr. Andrew Chew

      • How would you have reached that conclusion, Dr Chew? Just curious to know that, even though the answer might not be correct. Thank you.

        Trader’s Torch

      • Hi Traderstorch,

        For some unexplained reason, I received a trailer message from a server tagged to your email which shows James Cook University in the url address. Warmest Regards.

      • Thank you for your reply. Wonder why would that have happened. Good luck with your trading.

        Trader’s Torch

  2. I was suggested this blog by way of my cousin. I’m not positive whether this publish
    is written by him as nobody else realize such targeted about my difficulty.
    You’re incredible! Thank you!

    • Hi Janette,

      This blog is written by me, Dr. Andrew Chew. I own and run an asset management firm, The Panthenon Investment Group. My clients and friends have asked me a year ago to share my fx trading thoughts and trades with them and so I started this blog. I am sorry that I have not been diligent about updating the blog as I have other business commitments that have taken me away. However, I will be updating the trades in August and September next week. Warmest Regards.


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