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Category Archives: Trades

These is where we share with you the trades that we have executed. We also track our trades for overall profit/loss reconciliation.

I decided yesterday to buy a put option on the USDJPY with the following details: –

Strike: 111.13

Premium: 1.91

Breakeven: 109.22

Expiry: 10 August 2018

Felt that the USDJPY was overbought and that a retracement was due, more importantly, the 10 year treasury also signalled a possible retracement since it has a positive correlation with the USD.

This morning Asia time I decided to take profit on both the options with the following details: –

AUDUSD; sold at 0.7550, locking in a trading profit of 122bps.

USDJPY; sold at 109.20, lock in a trading profit of 0.76yen.

Not bad for a short trade!

Let’s see if we can identify another trade in the near future.

Uncertainty looming over the trade talks between Abe and Trump during Abe’s visit to the USA, Abe’s sliding popularity vote, Abe’s scandal, and the US 10 yield rising above 3%, all prompted me to feel that the yen will weaken in the near term.

So I decided to execute a 2 week call option, maturing on May 4th with the following details: –

Strike; 108.04, Premium; 0.40, Breakeven; 108.44

Let’s see.

On April 20th, I felt that the AUDUSD was peakish from a technical viewpoint.  More importantly, was the recent media releases about the health of the banks and the fact that the property market in Australia is starting to slide.

I decided to take the opportunity to do a 2 week put option expiring on May 4th with the following details: –

Strike; 0.7722, Premium; 50bps, Breakeven; 0.7672

Let’s see.

After the majors ripped through the USD for a better part of January, I decided that it was about time the USD was oversold or too far beaten up, that it will shortly be time for a reversal.

I decided to buy three options as follows: –

USDJPY @ Call option expiring Friday, 2 March; strike at 108.83, premium at 1.10 and breakeven at 109.93

GBPUSD @ Put option expiring Friday, 2 March; strike 1.4313, premium of 150bps and breakeven at 1.4163

AUDUSD @ Put option expiring 16 February; strike 0.8113, premium of 72bps and breakeven at 0.8041

 

I sold off the GBPUSD put option at 1.3990 for a trading profit of 173bps.

I sold off the AUDUSD put option at 0.7790 for a trading profit of 251bps.

My USDJPY option is in trouble with spot at 107.15, the option may expire in early March worthless.  In any case, at the time when I bought the option I was prepared to part with the option monies, so it’s ok.

More importantly, these three option trades clearly demonstrate that we can’t win all the time.  What’s important is to follow and study the market, put our mark on it and wait for the market to come to us, however, we should always manage the risk parameters, if we don’t, chances of losing monies is imminent.

Now, I need to think about doing the reverse in the USDJPY, what do the rest of you think?

The USDJPY traded to a high of 113.29 on January 5th and then consolidated slightly lower, just below 113.00

On Monday, January 8th, USDJPY made another attempt to surge upwards, I decided to sell the option at 113.30.

A nice trading profit of 82yen!

During the last week and into the first week of January 2018, the US Dollar took a beating from all the majors.

On January 2nd when I opened up my computers and looked at the FX markets, the USDJPY looked yummy.

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

Strike; 112.08

Premium; 40bps

Breakeven; 112.48

Expiry; Friday, January 12th

Let’s see what happens………..

Well, 2017 has proven to be both a tough and opportunisitc year.

It was not easy to spot the trends and certainly event driven trading also proved to be challenging, however, we managed to close our trading books with an absolute performance of 147.49%

Now, I am going to focus on Christmas.

Here’s wishing one and all a very Merry Christmas and good trading in 2018.

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.

 

Another sought after UK economic data.

I decided to place my straddle with the following details: –

GBPUSD; Stop if Offered at 1.3323, Spot at 1.3344, Stop if Bid at 1.3365

Claimant count came out worse at negative 5.9K versus forecast of 3.3K, and previous month was revised upwards to negative 6.5K from 1.1K. Bad situation in the employment scene in the UK.

Unfortunately, the GBPUSD spiked upwards and triggered my stop if bid and before I could do anything, it fell and hit my stoploss at 1.3344, so I ended up with a small loss of 21bps……………such is life!