The data in the US triggered some action in the different US pairs. The EURUSD has rallied slightly more than 100pips since the start of the week now trading at 1.24916.
With today’s action and the coming thanksgiving weekend in the US, we can expect volatility to drop between today’s data releases and the end of the trading day in the US.
In the options market when you’re short an option, you will profit from market stability.
One trading idea can be to sell at‐the‐money options (and volatility) and limit your loss by buying cheaper, out‐of‐the‐money options for the long thanksgiving weekend.
An example for a butterfly strategy that will profit as long as the EURUSD will trade 1.25207‐1.24625. Recently the 1.2465 level was broken and the new target became 1.25206. You can view this strategy in the ORE market place under strategy name: fxstreet thanksgiving. This is not a recommendation to trade but a trading idea.
You can see in the example, on the amount of a 1lot EURUSD your profit at open = $290. You’re possible loss on expiry if the spot traded out of range = $334.
The content provided is made available to you by ORE Tech Ltd for educational purposes only, and does not constitute any recommendation and/or proposal regarding the performance and/or avoidance of any transaction (whether financial or not), and does not provide or intend to provide any basis of assumption and/or reliance to any such transaction.
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