Thursday, 17 January 2008

Selling GBP/USD, and selling a Straddle

Cable (GBP/USD) today is up around 1.5 points, trading at 1.9770 just now. I just sold some Jun '08 at 1.9643, in just under $1,000 per big figure.

At the same time, I just sold a 1.98 Put and Call, expiring Feb 1st, for 1.674 points and 1.245 points respectively, so a total of 2.919 points.

If the pound falls, as I expect it to do over the medium-term, I book a nearly 3 points profit. If the pound rises, I'm comfortable selling more of it...note that on the straddle I lose money above about 2.0050.

Newsflow out of the US is horrible just now, maybe if it quietens down for a while we can get back to focusing on the impending UK crash.



Anonymous said...

You definitely need an accountant, pal:

a) you sold a straddle but reported it as if you actually bought it;

b) $1,000 per big figure should equal to a notional amount of $197,700, or am I missing something?

I'm glad to see your blog's counter is growing day after day...


2and20 said...

honestly, this spreadsheet thing is trickier than it looks! plus Google docs is TERRIBLE compared to excel...