I decided not to stare Lady Luck in the face, so I sold off half the option at 0.7500 (BE: 0.7408) for a trading profit of 92bps.
Not bad!
Monthly Archives: May 2017
As it turned out, the GBPUSD went to the moon after I bought the put option whereas my decision on the USDJPY call option turned out to be a BIG reward.
On May 9th, the USDJPY hit a high of 114.23 and I felt that there could be more momentum and I decided not to close the position. A few days later, our dear Trump started shooting his mouth off, the USDJPY came off slightly.
Another opportunity to take profit presented itself on May 11th when it recovered and was up to 114.32, I decided to take profit and sold the option at 114.29 for a nice trading profit of 4 BIG yen!
The GBPUSD put option on the other hand never saw daylight but the comforting fact is that I was prepared to lose the premium of 129bps to begin with.
So net net, we did well.
After slumping for three months, market is expecting the retail sales to recover.
So at near 4:30pm, I put in my Stop if Bid trade with the following details: –
Spot: 1.2980
Stop if Bid: 1.3000
Squared at 1.3033
Trading profit: 33bps
Not bad lah!
The straddle that was executed was triggered on the offered side and it almost got triggered on the bid side as well, thankfully.
However, the CPI, RPI and PPI data was mixed including the trade balance and the GBPUSD reflected it with a lack of momentum on the downside.
I decided to take profit at 1.2875 for a trading profit of 33bps.
UK usually is sensitive to this data as it is largely a services and consumption economy.
I decided to place a straddle with the following details: –
Spot: 1.2938
Stop if Bid: 1.2968
Stop if Offered: 1.2908
Let’s see.
Looked at the 1H and 4H AUDUSD charts and felt that the AUDUSD has bottomed and potentially has a chance to move up in the near future.
So decided to buy a 1 month call option with the following details: –
Spot: 0.7340
Premium: 68bps
BE: 0.7408
Expiry: 12 June 2017
Let’s see what happens.
The Panthenon Investment Group 