Video

#SaxoStrats
Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Squawk / 17 January 2018 at 17:23 GMT
For my education.
1) My Vanilla Long Put on USDCAD is exactly at the same level like before BoC rate hike announcement, but Option is still in pretty big loss (position entered on Monday). I assume it's because volatility on instrument has sharply increased. Is this true?
2) Where can I read online impl. and historical Vols on FX pairs, please? Of course I have no Bloomberg terminal.
Thanks
2y
Mekong Mekong
Not knowing much about your position, I would think implied volatility was elevated before the decision, and now the announcement is out, it has come out. Much like a fall in implied volatility in a stock options after an earnings release.
2y
Market Predator Market Predator
Hi Mekong, thx. for your comment!
2y
Market Predator Market Predator
This is something for having fun. BTW: today I'm analyst :) Hope time into expiration will play for me.
2y
fxtime fxtime
LOL....can I ask do you look at IV as a measure to IVR ? Are you using monthly options expiries or quarterly ? Why trade vanilla long put as could write synthetically to lower margin and enhance b/e Strangle/Straddle synthetics?
2y
Market Predator Market Predator
Hi fx, I assumed sharp move. It's OTC Option with expiry next Wednesday (possible to transform into spot instead of cash). Regarding Vol, it's a good question. I do not remember what was it during entering position. I now nothing about synthetic Options :(

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail