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Tag Archives: put option

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

Felt that AUDUSD was getting too high and at levels where it should not be, so I decided to buy a put option for 1 week expiring Friday, July 21st with the following details: –

Spot: 0.7730, Premium: 35bps, Breakeven: 0.7695.

Let’s see.

This particular call has turned out to be wrong and it looks like I will be taking a loss of 50bps as there will be no way that EURUSD will fall below 1.1270 within the next 3 days.

Oh well, you win some, and you lose some, that is FX trading for all of us.

Was following the Yellen speech last night and wasn’t convinced that it was a bullish speech, so I decided to sell the option last night at 1.1400 for a small trading profit of 49bps.

During lunch today when EURUSD was hoving dangerously near the 1.1500 level, I decided to buy a put option expiring on Monday, July 17th with the following details: –

Spot: 1.1485, Premium: 36bps, Breakeven: 1.1449

Right now at 9:54pm Singapore time, EURUSD has broken through the 1H 50DMA and 200DMA.

Let’s see what happens when Janet Yellen speaks shortly.

I didn’t feel comfortable about the GBPUSD so I decided to square the option at 1.2875 for a trading profit of 45bps.

Felt that the AUDUSD was not going south as strongly as I had anticipated so decided to square the option at 0.7580 for a trading profit of 57bps

The 1H chart looks so yummy with the EURUSD bursting downards of the Ichimoku clouds.  It also cut from the top the 200DMA.

It suggests to me that in the short term there could be further weakness in the EUR.

I decided to buy a 2 week EURUSD Put Option expiring on July 14 with the following details: –

Spot: 1.1320, Premium: 50bps, BE: 1.1270

Let’s see.

I also felt that the AUDUSD was unsustainable.

So I decided to buy a one month put option with the following details: –

Spot: 0.7692, Premium 70bps, BE: 0.7622, Expiry: 2 August

Let’s see.

I felt that the GBPUSD was too high and unsustainable.

On July 3rd, I decided to buy a GBPUSD put option for 1 month with the following details: –

Spot: 1.3020, Premium: 100bps, Breakeven: 1.2920, Expiry: 2 August

We will see.