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FxWirePro: AUD/NZD diagonal strips for profit maximization

Last month's diagonal strips have taken care of upswings and downswings and yielded handsome returns. The pair has pretty much achieved  our earlier target at 1.1317, we now foresee next target for this pair is at 1.1370 on upside and 1.1120 towards south, RSI is currently trending near 59.2487, while no attempts of %K crossover on slow stochastic above 80 levels signifies bullish momentum is continuing.

Currency Option Strategy:

Since the potential target on upside is about 90 pips where 150-160 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 the underlying currency exchange rate makes a strong move either upwards or downwards at expiration, with greater gains to be made with a downward move.

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