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Tag Archives: eurusd

14 August; 2 week EURUSD call option struck at 1.3385 expiring Aug 29th

Decided to execute a 2 week call option on the EURUSD with a premium of 49bps as volatility was very low.

Gave myself time for the market to come to me.

On August 27th in Asia session, the EURUSD hit a low of 1.3135, but I held onto the position, by the time the afternoon rolled around, the EUR started picking up momentum.

So I decided to square off the option at 1.3178 for a trading profit of 300bps…………Fantastic!!!!!!

Remember people, options are great in the sense that you would have rationalized taking the loss, that is, the cost of the premium when you execute the trade and that’s your maximum loss, now you have time on your side to make the maximum potential upside.

Trading the NFP…………………….

There was so much talk leading up to the NFP today.  My gut feel told me that it would be a market mover……….hmmmm……which way would be the real question?!

I felt that the NFP number would come out, as the summer months tend to post stronger numbers.

So I decided to place Stop if Offered trades about 20 bps OTM from the spot rates of GBPUSD, EURUSD and AUDUSD.

5 minutes after the announcement that NFP was 248K and unemployment rate at 5.9%…..Wow………market just sold off on the majors between 50bps to 80bps.

I immediately squared off my three trades and locked in a trading profit of 103bps.

I am now done for this week.  Will update the earlier trades for the month of August and September next week.

Here’s wishing all a great weekend.

EURUSD Put Option expiring Sept 5

So much talk leading up to today’s ECB rate decision and press conference.  I decided to to take a chance, it’s pure gut feel, I bought a put option for one day expiring tomorrow Sept 5 with a premium of 44bps, strike at 1.3150 and breakeven at 1.3106.

What a surprise!

The ECB announced cuts on the main interest rate and also went negative on the deposit rate, sending the Euro crashing, I just squared off the trade at 1.3026 and was happy with a 80bps profit.

This is the trade all of us have been waiting for!

22 July @ Bought a EURUSD call option expiring on Friday, 8 August

On 22 July, my technicals suggested to me that I should long the EURUSD, so I bought a call option expiring 8 August, strike at 1.3485, premium of 65bps and a breakeven of 1.3550.

Right now, as I am posting this trade, it looks like I was wrong, then again, let’s see, after all we have time.

Update on EURUSD Call Option expired on 25 July

As we all know, the market turned south for the Euro, and unfortunately, my call option expired worthless, and my loss was the premium paid of 20bps or a trading loss of 2%.

EURUSD Call Option expiring 25 July

My charts; Ichimoku, Stochastics and MA tell me that there is a potential short term breakout upwards for the EURUSD.

So I decided to buy a one day option expiring tomorrow 25 July 10am NY time, strike at 1.3470, premium of 20 bps and a breakeven of 1.3490.

3 June @ Stop if Bid, Short EURUSD

On 3 June, I felt that there were strong headwinds threatening the EURUSD, plus my bollinger bands were clearly oversold.

So I Short the EURUSD by placing a Stop if Offered at 1.3580, when the spot was at 1.3606 with a stop loss of 1.3600.

The trade was never triggered and I decided to take out the trade before I went to sleep.

In hindsight, guess what?  The EURUSD did correct, but only 5 June tumbling to 1.3502……….what a waste, should have continued to monitor the market, but I was out that night having dinner with group of friends.

Trade: Short EURUSD at 1.3795 and squared at 1.3775

On March 24th at about 4:45pm, I decided to short the EURUSD at 1.3795 with a SL at 1.3815 with a view that the Euro would weaken based on my techincals.

However, when the US session opened, it appeared that the Euro wasn’t going to soften that much so I decided to square the position at 1.3775 for a small trading profit of 20bps.

Trade: Short, Stop if Bid EURUSD at 1.3920 and SL at 1.3950 yesterday midnight

Last night at about the same time I placed the AUDUSD order, I also placed a short EURUSD stop if bid order at 1.3920 and SL at 1.3950.

As it turned out this morning, the level was not reached, so I decided to take out the order.

Now during NY trading session, the EURUSD has strengthened unexpectedly despite stronger US data.

I am so glad I took out the order this morning.

Trade Update; Short EURUSD at 1.3598 and take profit level at 1.3540

Ok, the take profit level was triggered just a few moment ago, the spot rate is now at 1.3545.

So you see, it’s good risk management to establish a take profit level when your trade is ITM – in the money.  So if the money continues moving in your direction, you continue to make, but if the market begins to backtrack, then, you would be taken out at your take profit level.

So for this Short EURUSD trade, we locked in a trading profit of 58bps.