Michael Schmeja, Global Head of Derivatives Sales.
A quiet Asian session and a quiet morning in the spot and options market which isn’t surprising due to the UK bank holiday. Most volatility pairs extending Fridays lows and taking the risk reversals lower. Fitch’s cut of Spain’s credit rating took the market lower Friday but faded.
The focus this week will remain on Europe, however the US holds some important numbers with the NFP’s on Friday. Bank of Canada will come up with a decision on their interest rate and the risk there is clearly if they don’t hike. Furthermore we have a lot of important Canadian data coming out the next two weeks. (see attached)
I will buy a strangle 1.0325/1.0725, roughly 25 delta, and will as usual try to trade spot around it. Expiry 14th of June, cost 100 CAD pips. Spot reference: 1.0490.
Otherwise not much to report, good luck with your trading, enjoy the bank holiday.
Short Term Trading ideas:
EURNOK
Comment:
Sold 50% of an 8.1500 EUR Call, expiry 1 month 28th of June paying me 500 NOK pips.
EURUSD
Comment:
Long EUR Put 1.2000, Expiry 1.1700 Expiry 17th of June
Short EUR Put 1.1700, Expiry 1.1700 Expiry 17th of June
Cost: 90 USD pips
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