Skip navigation

Tag Archives: put option

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.

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.