OPTION VOLATILITIES
The summer holiday season is in full swing and as a result, liquidity is thin and trading activity is muted. All major currency pairs are largely range bound and option volatilities are soft as a result. Continued tensions in the Middle East dominate the headlines. US Secretary of State Condoleeza Rice has traveled to the area in order to meet with leaders and hash out a new peace plan for the region.
OPTION TRADE IDEAS
Below please find some strategies, which depending on your view might be applicable. Please bear in mind that all of these trades can be applied to any of the currency pairs, which may be traded. All barrier levels, strikes, triggers, payouts, and maturity dates can be tailored to each individuals views.
View: USD/JPY will appreciate this week.
Trade: Purchase a 1 week USD/JPY Digital Call Option
View: USD/CHF will move dramatically in either direction over the next week
Trade: Purchase a 1 week USD/CHF Double One Touch Option
View: USD/CAD will stay below 1.1550 this week
Trade: Purchase a 1 week USD/CAD No Touch Option
View: EUR/USD will remain in range bound this week
Trade: Purchase a 1 week EUR/GBP Double No Touch Option
For further details, please contact the options dealing desk at 1.212.897.7660 or toll free at 1.888.50.FOREX.
