Get your copy of Paul Forchione's book, "Trading Iron Condor". Learn techniques from a professional options trader to manage risk while speculating on futures markets.
Click here to view Paul's eBook
By using our website, you agree to accept our terms of use (click to read)
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).
?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here to read a helpful tip about EuroFX futures and options
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 calendar spread and broken wing iron condor.
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.
Calendar
If one were concerned on rising implied volatility in light of events, this is a conservative structure with positive Vega that would benefit.
Broken Wing Iron condor
If volatility continues dropping off in the near term, this structure has negative vega which would benefit the iron condor position.
