Our short volatility trade recommendations are always in the form of a structure that has limited loss characteristics.
There are two ways of exploiting the elevated premiums in the Two week CAD bucket.
Buy CAD call butterfly : EG. Sell the atm straddle = 1.2720 for 1.23% and buy the 1.2560/1.2880 strangle for a debit of .39% for a net credit of .84%
Or Buy a call or put Condor EG buy the 1.2920 CAD Call sell the 1.2800 CAD call Sell the 1.2680 CAD call and buy the 1.2560 CAD call All for a net debit of approx. .46% All strikes on the same face amount
Expiry 28-04-23
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