Monday, 14 January 2008

Selling another EUR/USD Call

The Euro has rallied pretty hard in the last few days, and following my losing option trade which expired on Friday, I'm going to give call selling another go. Luckily for me I didn't dive straight in on Friday as the market is up about a point since then, trading ~1.4890 just now.

Selling a 1.47 Call expiring Feb 1st for 2.435 points, for $2435 premium. My hope is we see bearishness on the US fade a little over the next couple of weeks, which should help the dollar out a little bit. Europe has many problems, and to me this doesn't seem to reflected in the FX markets, where everyone seems to love the Euro. Who knows why.

3 Month Chart of EUR/USD


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