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Tag Archives: put option

The USA had two good days; good ISM manufacturing PMIs, good ADP non farm payrolls, good ISM non manufacturing PMIs………..kept the USD bidded against all majors.

Although, my put options are only expiring tomorrow and we have the non farm payrolls which could be stronger or weaker than the ADP, I am not confident in taking the risk exposure going into the last day of my option.

So I decided to take what the market could give me now and sold off both the put options at 1.3180 for a trading profit of 80bps. Not bad lah…………1:1 payout ratio, was hoping for more…………….however, never stare Lady Luck in the face.

So, gladly I am out of all four put options without any BLOOD!  Sold of the first two at breakeven level and the last two for a profit.

Yesterday, I decided to reduce my risk exposure by selling two of the put options at 1.3230 for a small trading profit of 30bps.

I am still holding two more put options and hopefully, we will see a further downside to the GBPUSD.

Right now, it’s attemtpting to cross the 200DMA @ 4H chart at 1.3201 from the top, if it does, then, we should see a collapse in the GBPUSD, unfortunately, will my put option have enough time???

Spot currently at 112.71.

Looks like my put option expiring tomorrow will expire worthless and will take a hit of 1.03yen, the cost of the option.

Oh well, we win some and we lose some…………that is FX trading………….

The GBPUSD is going crazy, it’s now at 1.3530!!!!!!!!!!!!

I don’t believe in the strength of the GBPUSD, so I am buying another GBPUSD put option with the following details:-

Expiry date: Friday, Oct 6th

Strike at spot: 1.3530

Premium: 110bps

Breakeven: 1.3420

My average breakeven for 4 put options is now: 1.3260.

Let’s see!!!!

This morning Aussie time, I decided to buy another put option on the GBPUSD with the following details: –

Strike: 1.3400

Premium: 110bps

Breakeven: 1.3290

Average of three put options now: 1.3206

Bought another put option since the GBPUSD spiked up more than 100bps.

Strike at spot of 1.3340

Premium: 110

Breakeven: 1.3230

Now my average breakeven is 1.3165

Let’s see.

Based on 4H chart, it seems that GBPUSD has completed three waves and is on the way down?!

I decided to but a put option for 3 weeks expiring on Friday, October 6th with the following details: –

Strike: 1.3210

Premium: 112bps

Breakeven: 1.3098

Let’s see what happens?!  I am managing this option risk through a small size trade.

The 4H chart seems to indicate a potential triple top; 110.88 – 110.58 and currently 110.50.

I decided to execute a two week put option expiring Friday, Sept 29th with the following details: –

Strike: 110.50

Premium: 1.03

Breakeven: 109.47

Target: 108.20

Let’s see what happens?!

The two AUDUSD put options caused me premiums of 65bps.

You win some you lose some.

The lesson learnt this time around, is that when dynamics change, it is important to take two steps backwards to study the changing dynamics and to ascertain whether the goalposts are changing or have changed and why?

Lost 36bps on the premiums paid for the EURUSD put option which expired on July 17th……….worthless.