After recent months’ volatility, last week’s data and expected US and BoJ data coming out this week, it puts the pair in light of interesting options trading opportunities. If you want to speculate on a pull back from the USDJPY highs or simply maintain your long spot position without fearing being stopped out due to volatility, one interesting option is the USDJPY 37% delta PUT with the strike of 117.94 being the recent resistance level and now the new support level. It is trading for the price of 34,800.74 (294.30USD) on a one lot and expires Nov. 28, after Japan’s CPI on the 27th. The next level of resistance is 116.66 where if trades to that point within the duration time of the options, can yield profit of 267% on the cost of the option. Your maximum loss is that of the price paid for the option.
Below you can view a table of the greeks calculated to this option with different NPV by rate scenarios and a payout graph at expiry. Note that you will begin profiting on the option once the direction of the spot is downward.
This is not a recommendation to trade but a suggestion option idea.
Below you can view a table of the greeks calculated to this option with different NPV by rate scenarios and a payout graph at expiry. Note that you will begin profiting on the option once the direction of the spot is downward.
This is not a recommendation to trade but a suggestion option idea.
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