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.
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