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It’s interesting how the forex markets can really give our hearts a good workout!

Gladly, I bought a call option on the GBPUSD and was prepared right at the get-go, to lose the premiums of 46bps.

As you will recall, I did the trade on January 14th; struck at 1.6390 with a breakeven of 1.6436.  After I did the option the GBP started to turn down to 1.6312 on January 16th.

Like all traders, while I was happy to lose the premiums that I paid for the option, the little guy at the back of your head always wishes that the analysis on your trade is correct.

On the fateful day of January 17th, the GBPUSD miraculously moved upwards based on very strong retail sales.  It moved all the way up to 1.6458 during London morning.

My option was due at 10am NY session or 10pm Singapore time.  NY opened with GBPUSD still staying quite firm and my option was eventually closed at 1.6449 for a very tiny profit of 13bps.  I am just happy I didn’t have to forgo my premiums.

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