FXE short strangle 2015 Dec monthly

The details of this trade are as follows:

Date Inst. Mark. # L/S Strike C/P Price Δ Days Max profit Comm. Close P/L
1 11/17/2015 FXE
(dec)
104.36 1 short 101 P 0.50 0.21 31 $91 $1.50
1 short 108 C 0.41 0.19 $1.50
2 12/03/2015 FXE
(dec)
107.35 1 long 108 C 0.94 0.21 15 $27 $1.50
1 short 110 C 0.30 0.19 $1.50

Trade reasoning

The IV rank of FXE is high at 83% today, which makes for nice options premiums.

The EURO is set not to rebound, since:

  • Draghi said they will have further easing
  • The USD will strengthen with the Fed rate hike
  • The Paris terrorist attacks are bearish for the EU economy

But the main reason for this trade is the high IV, and to get my trade instances up.

Here are the usual charts on this trade.

 

fxe-dec-risk

fxe-dec-options-chain

cufxe-dec-charts

 

 

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