Option Volatilities
Traders have returned from the long holiday weekend to news of US Treasury Secretary Snows resignation. President Bush has selected Hank Paulson, CEO of Goldman Sachs; as Snows replacement. The Dollar had a slight recovery following the news but lost its gains relatively quickly. The recovery was more a sigh of relief after rumors had been circulating that Bush would appoint Don Evans, former US Commerce Secretary, and it was widely believed that Evans would tend to favor a weaker dollar. Paulson is known to have a good working relationship with Asian nations, particularlyChina which should help maintain flexible currency policies.
Volatilities are slightly better bid this morning. Data out this week, including Consumer Confidence and Non-farm Payrolls are likely to keep vols firm.
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.
