Skip navigation

Daily Archives: September 14th, 2017

Bought another put option since the GBPUSD spiked up more than 100bps.

Strike at spot of 1.3340

Premium: 110

Breakeven: 1.3230

Now my average breakeven is 1.3165

Let’s see.

At 6:50pm, I placed my straddle trade with the following details: –

Stop if Offered at 1.3170, Spot at 1.3204, Stop if Bid at 1.3230

Correspondingly SLs at spot.

As it turned out, interest rate was kept on hold, so was the asset purchase.

Votes was the same at 7-2.

I suppose the financial markets took the two differeing votes as another constant from the last rate decision and concluded that it means the BOE is on firmer ground, I don’t know.

However, the GBP strengthened, triggering my Stop if Bid.

I squared the trade at 1.3333 for a trading profit of 103bps.

Thank you BOE or should I say, thank you High Street and Wall Street!

Based on 4H chart, it seems that GBPUSD has completed three waves and is on the way down?!

I decided to but a put option for 3 weeks expiring on Friday, October 6th with the following details: –

Strike: 1.3210

Premium: 112bps

Breakeven: 1.3098

Let’s see what happens?!  I am managing this option risk through a small size trade.

The 4H chart seems to indicate a potential triple top; 110.88 – 110.58 and currently 110.50.

I decided to execute a two week put option expiring Friday, Sept 29th with the following details: –

Strike: 110.50

Premium: 1.03

Breakeven: 109.47

Target: 108.20

Let’s see what happens?!