Skip navigation

Monthly Archives: May 2016

I hope all of us was there at 12:30pm today for RBA’s rate decision?

This meeting of RBA has been getting a lot of noise in the media since the past three weeks.

I decided to buy a AUDUSD Put Option with the following details: –

Strike; 0.7696, Premium; 34bps, Breakeven; 0.7662, expiry 10am NY 4 May

As it turned out, the RBA decided to cut interest rates by 0.25% to 1.75%.  As expected market reacted selling the AUD down aggressively.

Within 15 minutes, I decided to sell the option at 0.7563, locking in trading profits of 99bps!

Thank you RBA.

Trust all of you also managed to capture this opportunity……….(“,).

More drama later into the week…………