ON my previous post I mentioned that I went short on the EURUSD on the break of the ascending trend-line.
The beauty of this position is the strategy I used. Volatility levels were high in this currency pair which gave opportunity to sell some call options at a 1 standard deviation (around 1.11). Even though the price action went against me by over 100 points, because of the position I used I am not loosing money and providing that the EUR/USD is not above 1.11 in 40 days time I will make a ROC (return on capital) of 50%.
The beauty of this position is the strategy I used. Volatility levels were high in this currency pair which gave opportunity to sell some call options at a 1 standard deviation (around 1.11). Even though the price action went against me by over 100 points, because of the position I used I am not loosing money and providing that the EUR/USD is not above 1.11 in 40 days time I will make a ROC (return on capital) of 50%.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.