FxWirePro: Offsetting USD/CAD via option arbitrage as NPV of ATM puts seem costlier
Nov 17, 2015 12:02 pm UTC| Technicals
The implied volatility of ATM contracts for near month expiries of this the pair is at around 8.9% and for 1w expiry at 8.4%. NPV of 1w ATM put is 552.60 while premiums trading above 19.02% at USD 657.67 for lot size...
FxWirePro: Employ EUR/USD diagonal backspreads on highest IV and risk reversal among G20 space
Nov 17, 2015 11:21 am UTC| Technicals
As you can observe from the diagram the implied volatility for near month at the money contract of this G7 major has been highest among currency pool, likely to perceive at 12% for 1m expiry. While delta risk reversal...
Nov 17, 2015 08:53 am UTC| Technicals
Weve been observing consistent price drop last Wednesday previous to which the puzzling trend in this pair was sideways and certainly not an uptrend. Any abrupt upswings can be utilized by constructing put ladders so as...
FxWirePro: AUD/NZD higher IV bids writers an opportunity – CRBS hedges extended upswings
Nov 17, 2015 06:39 am UTC| Technicals
Aussie dollar after long lasting losing streak that has begun from July, it is now making an attempt of recovery a bit as both technical and fundamental indicators are signaling buying sentiments. Hence, we recommend it...
FxWirePro: EURO volatility optimizer through gamma spreads
Nov 16, 2015 11:13 am UTC| Technicals
Hedging framework using naked contracts would turn out to be a gamble on those currency pairs whose implied volatility would be gradually increasing (from the nutshell one can observe, EURO currency crosses except EURCHF...
FxWirePro: Option strips to leverage profitability in down streaks of EUR/CAD
Nov 16, 2015 10:22 am UTC| Technicals
Our last target at 1.4355 levels has been convincingly achieved, the currency cross for now is likely to retest even below these levels around 1.4161 levels back again. Even though some minor buying interest seen in this...
FxWirePro: EUR/CAD rallies seem exhausted - collars for hedging
Nov 16, 2015 09:54 am UTC| Technicals
We had earlier also traced out bearish indications to head towards 1.4355 and even the levels up to 1.4150. As the highs of 1.4387 are once again rejected at trendline resistance (see circled area). For now the pair is...
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