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Daily Archives: November 2nd, 2017

Thank you BOE!

As it turned out, this was a classic case of buy on the rumor and sell on the fact.

When BOE announced the hike, plus the votes and keeping asset purchase flat, the GBPUSD went on a meltdown.

I took profit at 1.3120 for a trading profit of 115bps.

Many thanks BOE and GBPUSD!

Nov 2 @ Bought a one day put option on the GBPUSD expiring Friday, Nov 3rd

You know the classic story when they say buy on rumors and sell on fact.

Well, I felt that the GBPUSD kind of overshot, so I decided to gamble alittle by buying a small position by way of a put option for one day expiring on Friday, Nov 3rd with the following details: –

Strike at Spot: 1.3290

Premium: 55bps

Breakeven: 1.3235

Let’s see.

Nov 1 @ Bought a 1 month AUDUSD Call Option expiring Friday, Dec 8th

I feel that the AUDUSD is somewhat oversold, given the strong economy, strong exports, stable housing, low interest rates, good employment and great weather.

So I decided to buy a one month call option with the following details: –

Strike at Spot: 0.7665

Premium: 70bps

Breakeven: 0.7735

Currently, it is trading at 0.7700