FxWirePro: Gravestone doji on AUD/NZD - diagonal strips for hedging

A bearish gravestone doji pattern has occurred at around 1.1218 levels on weekly charts but current prices maintained well above moving average curve and leading oscillators to substantiate current price fluctuations. The pair has pretty much achieved  our earlier target at 1.1317, we could now foresee and maintain our next target for this pair is at 1.1370 on upside and 1.1120 towards south, RSI is currently trending near 59.9825, while %K crossover on slow stochastic near 65 levels signifies bullish momentum is continuing. Last month's diagonal strips have taken care of upswings and downswings and yielded handsome returns.

Currency Option Strategy:

Since the potential target on upside is about 50 pips where 160-200 pips on downside, options strips are to be deployed, now have a look at the diagram fro prevailing prices of ATM puts and they are moving in line with healthy delta. We've been firm to hold on this strategy on hedging grounds, unlike spreads, combinations allow adding both calls and puts at a time in our strategy.

Hold 15D At-The-Money 0.50 delta call and simultaneously hold 1 lot of 1M At-The-Money -0.50 delta put options with positive theta values and one more put option 1M At-The-Money puts after squaring off 1st option. The rationale is that any potential downswings should be optimally utilized, so to participate in that downtrend, weights in the portfolio should be doubled with ATM puts.

Huge profits achievable with the strip strategy when AUDNZD exchange rate makes a strong move either upwards or downwards at expiration, with greater gains to be made with a downward move.