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Highlights
- GBP erases week's gain and completes third consecutive week lower
- Theresa May requests more time from E.U. (upcoming Wed)
- Dollar strength helps push all major currencies lower
- Dollar reverses its weekly losses
Volatility
Options fall into the category of being slightly undervalued in non-volatile markets in the weekly options report.
Notes:
Contract Size - $125,000 Euros
Tick Size: 0.0001=$12.50 for premium
Trading Hours:
Sunday - Friday 6:00 p.m. - 5:00 p.m. (5:00 p.m. - 4:00 p.m. Chicago Time/CT) with a 60-minute break each day beginning at 5:00 p.m. (4:00 p.m. CT).
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EUROFX
Below are weekly & daily charts for reference.
?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here on enlarging images
Strategies
Below is the starting position for a ratio spread and iron condor. It allows for time to adjust the spread structure if necessary as price moves within a reasonable range of daily volatility. Ratio spread is purely a directional play and can be built upon as markets move. The % yield shown in the diagrams below represent an estimated return on margin from projected dates shown below. The structure has positive time decay which is an advantage over holding outright options.
Ratio Spread
Iron condor
