Trade view / 04 February 2014 at 9:01 GMT

Taking profit on the 1.6525 Put on Cable

Head of Futures & Listed Options / 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

 

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Non-independent investment research
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1y
fxtime fxtime
Good call...thx :-)

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