TV

John J Hardy
Eurozone and German PMIs both better than expected, data from France a little disappointing but overall it's good news for the Euro.
Trade view / 04 February 2014 at 9:01 GMT

Taking profit on the 1.6525 Put on Cable

Patrice Henault Patrice Henault
Futures & Listed Options Product Manager / Saxo Bank
Denmark

Background

The Cable dropped sharply during the last five days and Stochastics started to become oversold.
Let's take our profit on the 1.6525 Put.
GBPUSD Daily Bar Chart

Source: Saxo Bank

 

Entry: Sell back the 1.6525 Put (Bought on January 30 at 0.0141) at 0.0274

Profit = Exit Price - Entry Price
         = 0.0274 - 0.0141 = 0.0133

For GBPUSD 100,000 of nominal value you paid a premium of USD 1.410 (0.0141*100,000) to realise a net profit of USD 1,330 (0.0133*100,000)

Return on Investment
=Net Profit/Net Premium Paid*100
= 1.330/1,410*100
= 94.32 percent

 

Disclaimer:
Non-independent investment research
This investment research has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Further it is not subject to any prohibition on dealing ahead of the dissemination of investment research. Saxo Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. » Read more

04 February
fxtime fxtime
Good call...thx :-)

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