Decided to execute a 2 week call option on the EURUSD with a premium of 49bps as volatility was very low.
Gave myself time for the market to come to me.
On August 27th in Asia session, the EURUSD hit a low of 1.3135, but I held onto the position, by the time the afternoon rolled around, the EUR started picking up momentum.
So I decided to square off the option at 1.3178 for a trading profit of 300bps…………Fantastic!!!!!!
Remember people, options are great in the sense that you would have rationalized taking the loss, that is, the cost of the premium when you execute the trade and that’s your maximum loss, now you have time on your side to make the maximum potential upside.
The Panthenon Investment Group 