Recently, the account was found to have two trades and a higher than alloted amount of capital with a high correlation. Puts were bought for FXA and calls were bought for UUP. The basis of the trades were the same, with expectation of a stronger dollar in the future. But making both trades was not the correct way to go and left the account in more danger than it should have been. Not surprisingly, the market took care of the mistake as the FXA trade moved into Code Red territory and the position was sold for a loss.
Finding the right correlation between trades is extremely important. Having a high correlation between many trades is a waste of capital as commissions will eat into profits. It can also leave you vulnerable to big moves in the opposite direction. Be sure to recognize and regularly review your trades' correlation levels when trading. If there is a high correlation between trades, be sure you understand why that added correlation risk is being taken on. If you do, then great. But if you don't, take action to remedy the situation.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
Showing posts with label Australian Dollar. Show all posts
Showing posts with label Australian Dollar. Show all posts
Saturday, January 5, 2013
Wednesday, January 2, 2013
FXA Put Trade Over Code Red
The Feb FXA $103 put trade has ended Code Red. The option reached its stop loss price today as the ETF rose above $105.00 today.
Previous options trades include FXY, USO , IAU, PIN, SPY, XHB, FXF, UUP, and FXC.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
Previous options trades include FXY, USO , IAU, PIN, SPY, XHB, FXF, UUP, and FXC.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
Friday, December 28, 2012
FXA Put Trade Still On; Code Orange
The FXA Feb $103 put trade is still on. The status of the trade is Code Orange. the Feb $103 put is currently trading at $0.90. FXA is currently trading at $103.88.
Previous options trades include FXY, USO , IAU, PIN, SPY, XHB, FXF, UUP, and FXC.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
Previous options trades include FXY, USO , IAU, PIN, SPY, XHB, FXF, UUP, and FXC.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
Monday, December 24, 2012
New FXA $103.00 Put Trade
A trade has been made in FXA. The February $103 Put has been purchased. The option was purchased for $1.10. The goal for the trade is $3.00. FXA is currently trading at $103.80. Some reasons for the trade are:
- Risk off is bigger and bigger the longer that the US Fiscal Cliff keeps going
- FXA is technically overbought and a 2 month time frame major level of support of $100 is in reach
Previous options trades include FXY, USO , IAU, PIN, SPY, XHB, FXF, and FXC.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
- Risk off is bigger and bigger the longer that the US Fiscal Cliff keeps going
- FXA is technically overbought and a 2 month time frame major level of support of $100 is in reach
Previous options trades include FXY, USO , IAU, PIN, SPY, XHB, FXF, and FXC.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
Subscribe to:
Posts (Atom)