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Daily Archives: February 12th, 2014

After my spot trade earlier in the day, I kicked myself for not keeping the spot position and instead write a call option as AUD continued to strengthen.

I suppose I was pre-occupied by my impending lunch with my father, so decided to just square off the spot trade.

Nonetheless, I saw the opportunity again later in the day, so I decided to buy a call option for one day at the strike of 0.8842 when spot was 0.8822 with a premium of 21bps and breakeven of 0.8863.  At about 2am, the AUDUSD looked alittle peakish…………so I decided to sell the option at 0.8935 for a trading profit of 72bps.