Friday, 4 January 2008

GBP Option (2.00 Straddle) Expires

Back on December 17, I sold a 2.00 straddle on cable (GBP/USD) for 3.826 points, pocketing £3,820 in premium. It expired today at 2.47, netting a profit of $2,679 (£1,356).

Pretty pleased with the trade as my rationale seemed to work, although some last minute selling in the market pushed it down from ~1.98 to 1.975 area, so unfortunately cutting my profit by $1,000, dammit.

Today's Chart (Friday Jan 4th) of GBP/USD - note the fall just before option expiry (London time)

Still plan to play Sterling from the short side this year, this is one to keep an eye on.


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