The implied volatilities of 1m EURAUD ATM contracts are trading shy above 9%, while the spot price in technical trend approaching near crucial juncture at the resistance of falling wedge, it seems to be equal opportunity for both bulls and bears. It has become a quite tough call for anyone to predict the short term trend but slightly favouring upside traction in near terms.
You could figure out that in our recent technical write up, please follow the below weblink for more reading on our technical post:
While negatively skewed 1m IVs are signaling the luring opportunities in out of the money put writings as the IVs are also on a lower side which is conducive for option writers.
Hedging Framework:
3-Way Options straddle versus OTM put
Spread ratio: (Long 1: Long 1: Short 1)
How to execute:
Go long in EURAUD 1M at the money +0.51 delta call, go long 1M at the money -0.49 delta put and simultaneously, short 2w (1%) out of the money put with positive theta.


Lithium Market Poised for Recovery Amid Supply Cuts and Rising Demand
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed
Urban studies: Doing research when every city is different
S&P 500 Relies on Tech for Growth in Q4 2024, Says Barclays
Geopolitical Shocks That Could Reshape Financial Markets in 2025
Bank of America Posts Strong Q4 2024 Results, Shares Rise
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift?
China’s Growth Faces Structural Challenges Amid Doubts Over Data
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One
Moody's Upgrades Argentina's Credit Rating Amid Economic Reforms
2025 Market Outlook: Key January Events to Watch
China's Refining Industry Faces Major Shakeup Amid Challenges
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts




