Forex options expiring at the 10am (15.00 GMT) New York cut 9 August 2018
A few billion going off in close proximity in USDJPY between 110.90 & 111.50. A sizeable expiry in USDCNH too.
Forex option expiries
Option premiums peak as downside fears ease (Full Story), but still elevated
Euro hedgers can benefit from downside risk by adding barriers to EUR puts
3-mth 1.15 EUR put 106 pips, break-even 1.1394 at expiry (spot ref 1.1600)
However, add a 1.1200 knock out barrier and premium reduced to just 10 pips
Hedge protects against more limited sub 1.15 decline, adjust strikes to suit
3mth 1.15 EUR put with KO 1.13 just 3 pips, or 1.15 with 1.10 KO 40 pips
Hedge allows holder to sell spot at strike at expiry, if barrier intact
Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”
Read how Ryan got into trading here
Philosophy: “Don’t be a Dick for a tick”
Read how Ryan got into trading here
Latest posts by Ryan Littlestone (see all)
- The last NFP competition of 2022 - December 1, 2022
- Will this month’s US NFP be a horror show? - October 4, 2022
- US NFP competition – Do you think there’s going to be a turn in the US jobs market? - August 31, 2022