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Strong Forex Market in Pre-Market Options Trading

Options Trading — Tue, 13 Jul 2010 13:19:58 +0000

Sponsored LinkOptions trading looking up as strong forex market appetite for risky currencies is driving S&P 500 and major US market index futures higher this morning. Retail traders obviously won’t get the opportunity to participate in the morning pre-market rally – so instead we’re lurking on the sidelines with an eye on the forex market. At the open we’re looking for decisiveness in the retail forex market to determine what the post-open movement will be. Yesterday we say the pre-market activity acting against the retail trade however it is looking like both retail and institutional investors are on the risk-positive side. As always, looking carefully at the risky currencies AUD, EUR, CAD, and NZL versus USD, CHF and Yen. Strong USD, Yen, (and to less extent) CHF look for S&P 500 reversal. Otherwise it’s going to be a strong Up day. As before, our overall intermediate term bias remains negative – a market high today may provide an opportunity to pick up a longer duration put option as a “flash crash” hedge. Once you own it leave a trade trigger (or trailing sell order) on it for a tidy gain should May 6th repeat itself and forget about it. Premiums [...]

Forex Options Trading | China Dropping Peg?

Options Trading — Mon, 21 Jun 2010 12:59:36 +0000

Forex options trading alert: According to an article put out by People’s Bank of China the Yuan peg to the dollar is going to be allowed to flex more. In Forex markets this morning, this has already had a dramatic impact on the “risk” currencies I mentioned in previous posts. Although the market is giving mixed signals right now – the overnight activity overall was strong in favor of risky assests. Expect a drop in VIX at open, sharp rise in DIA, SPY (S&P 500), and similar risk indices. Expect drop in US Treasuries. Retail traders won’t be able to take advantage of the initial move, but be watchful of our “risk” vs “safe” currencies. A continued rise in euro and commodities currencies (NZD, AUD, CAD) combined with falling USD and Yen portends rising stocks generally. The reverse obviously shows falling stocks. Check which way the money is flowing AFTER the open before deciding which way to go. That’s how I roll. Happy forex options trading today! Read more from Forex Options Trading | China Dropping Peg? - a post from: Binary Options Trading Tutorial - Forex Signals | Make Money Day Trading