FxWirePro: EUR/CAD straps well placed on trendline support

The pair took support at trend line at 1.4800 earlier and now around 1.4661 areas which is quite reasonable as it was a steep spike and fall, we had earlier traced out an inverted hammer pattern candle at 1.4716 levels which is to be considered as a caution of either probable reversal upward or continuation of upswings and now look at what has been happened. We believe as it held this level strongly on weekly basis then healthy bounce back may happen upto 1.5085 levels (i.e. previous channel distance).

If you think Euro to spike up against Canadian dollar as it took support at lower channel line and heading towards the target at 1.5005 levels, then cover your underlying currency exposures with option straps strategy. The calls on option straps strategy are rightly placed with accurate timing. No regrets those who've missed it, the recommendation goes this way, buy 15D At-The-Money delta put option and simultaneously buy 2 lots of 15D At-The-Money delta call options, one can still build the same at this juncture. The strap is more of customized edition of combination and more bullish version of the common straddle.

Hence, any hedger or trader who believes EURCAD is more likely to surge upside can go for this strategy. Maximum returns can be achievable when the underlying exchange rate makes a strong move either upwards or downwards at expiration but with greater gains to be made with an upward move. Cost of hedging would be Net Premium Paid + brokerage/commission paid.