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03 - SEP - 2020  05:21 AM  Singapore   
One Week EURGBP Trade Idea 
We were filled on our order to sell the full hedge at .9050 at  04:33:48 PDT on Sept 8th rolled forward at flat. 
Leave a follow up order to buy back the full hedge at .8950 good to expiry. 
7AM PST Sept 10th. We exercised the 89.50 EUR call against out short outright position at 90.50
Net gain 100 points (90.50-89.50) Cost of the strangle = 19 tics. 
Gross gain on one-week Strangle in % = 100/19= 526%

In our weekly commentary of August 21st we gave readers an early heads up that this trade was close to generating a signal. Here is the link https://conta.cc/2QiEsPH

When this trade was recommended we did not do so based on any knowledge of or views about any potential break down in the UK-EU divorce talks. All we knew is that these options are cheap based on our in-house indicators. And, that is basically all we do, we just crunch a lot of numbers to find options that are undervalued based on our in-house indicators. The maturity can be anywhere from one-week to one year but in each instance the process is the same. We do not put trades on based on anything else. 

Trade Idea: BUY ONE WEEK EURGBP STRANGLE ATM VOL REF 6.25

One Week  Expiry  2020 -10 - 09 (7 Days) (Sept 10th 2020 NY Cut)


Spot Ref .8878 Vol Ref 6.25

Buy One Week 89.50 EUR call GBP Put Cost 7 tics 
Buy One Week 88.25 EUR put GBP Call Cost 11 tics
______________________________

Total Cost in GBP tics 19 

Leave Delta Hedge Orders as follows

Buy 50% of the Hedge at 88.10
Sell 100% of the Hedge at 90.50 


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Research Director
FXVOLRESEARCH  

Direct: 604-685-4414
skype: jamesrider1