On July 8th, I saw the opportunity to go Long the AUDUSD, however, I felt that I needed time for the market to recover and develop back to 0.8000.
I did a vanilla call option to buy AUDUSD ATM 0.7390 expiring 27 November :-
Spot 0.7390, Strike ATM, expiring 27 Nov, premium 200bps, BE at 0.7590.
The meltdown in Shanghai and Shenzhen equity markets plus the collapse in ore prices specifically, iron and copper has contributed to the weakness in AUD. This is my belief.
The property market is running away in Australia despite the implementation of the stamp duties or sales tax. The cheap interest rate environment is spurring investors and speculators to ‘whack’ the property market.
Anyway, to test my own conviction I did a notional amount of US$50Million or a premium of US$1Million.
Let’s see.
By the way, I know I have said it before in my tweets and I haven’t done it yet, however, I will be writing an article on Greece and why I believe so strongly that Greece and the EU should part ways.
The Panthenon Investment Group 