Hello Traders ,
today we expect USDCAD to remain bearish as price has broken below ascending trendline in daily chart , and in weekly it seems clear breakout of uptrend , so maybe we expect price to move further down :
In order to trade current analysis which is that price may remain bearish and close below 12470 at our options expiry we have created 2 legs of options where we have
1. SOLD CALL OPTION @ STRKE PRICE 12470 = FOR WHICH WE HAVE RECIEVED PREMIUM OF 23 EURO : by doing this we get premium as profit if price remains below 12470 @ our option expiry today.
as selling option is risky move we have also bought and option at higher strike price to limit our losses if trades goes sideways..
2. BUY CALL OPTION @ STRIKE PRICE 12510 = for which WE PAID 11 EURO : And by doing this we limit our losses , means if price moves bullish our losses will be covered by this call option which increases in value if price moves above 12510 .
By creating 2 legs we remain with net +12 euros in account with no cost to open these trades , so we have not paid anything to open these trades , only recieved the premium , & our margin is used to support selling call option..
Will update the result tomorrow after option expires...
thanks...
today we expect USDCAD to remain bearish as price has broken below ascending trendline in daily chart , and in weekly it seems clear breakout of uptrend , so maybe we expect price to move further down :
In order to trade current analysis which is that price may remain bearish and close below 12470 at our options expiry we have created 2 legs of options where we have
1. SOLD CALL OPTION @ STRKE PRICE 12470 = FOR WHICH WE HAVE RECIEVED PREMIUM OF 23 EURO : by doing this we get premium as profit if price remains below 12470 @ our option expiry today.
as selling option is risky move we have also bought and option at higher strike price to limit our losses if trades goes sideways..
2. BUY CALL OPTION @ STRIKE PRICE 12510 = for which WE PAID 11 EURO : And by doing this we limit our losses , means if price moves bullish our losses will be covered by this call option which increases in value if price moves above 12510 .
By creating 2 legs we remain with net +12 euros in account with no cost to open these trades , so we have not paid anything to open these trades , only recieved the premium , & our margin is used to support selling call option..
Will update the result tomorrow after option expires...
thanks...
Trade closed: target reached:
at expiry price was below 12470 ... settled with premium recieved in profit..