I wasn’t sure whether the FOMC will turn out like the BOE last month, but there was sufficient buzz in the market to suggest that it could be a volatile event.
I decided not to stay up for the action but instead place some one day vanilla options with the following details:-
EURUSD Call Option; Spot 1.1762, Premium; 40bps, Breakeven; 1.1802
USDJPY Put Option; Spot 113.05, Premium; 38bps, Breakeven; 112.67
AUDUSD Call Option; Spot 0.7610, Premium; 21bps, Breakeven; 0.7631
Decided to square all the three options as follows: –
EURUSD at 1.1830 for a trading profit of 28bps
USDJPY at 112.61 for a trading profit of 0.6 yen
AUDUSD at 0.7634 for a trading profit of 3bps
This whole exercise turned a small profit of 36bps……………aarrgghh…………the whole event turned out to be a lacklustre event.
Ok, I am closing my books for 2017.
Will put up the final performance figures for 2017 shortly.
The Panthenon Investment Group 