Published On: Tue, Mar 21st, 2017

EURUSD perking up a little — #SaxoStrats



It might be a little premature to conclude that the euro has turned the corner, as my colleague John Hardy argues, but the price is certainly enjoying a positive moment. The RSI on both daily and hourly charts is rising as has the on-balance volume.

EURUSD’s positive momentum

Source: SaxoTraderGO

We will therefore take a bullish position in the market using the options for the underlying futures contract 6EM7.

Management and risk description

Using a vertical call spread we will look to manage the risk on this trade to net debit paid.

Make sure you place the long call before the short one, leg-per-leg.
 Source: Saxo Bank


Underlying: 6EM7

Status: opening trade

Trade: Buy +1 Vertical 6EM7 JUN 17 1.08500/1.09000 @ .0025, size $ 12.50 per increment (you’d need to go inside the bid/ask) or better.

Breakeven: 1.0875 (at expiration)

Maximum gain: $ 312.50 (at expiration)

Maximum loss: $ 312.50 (at expiration)

Entry: today as two separate orders,

1. buy to open +1 6E 09 JUN 17 1.08500 

2. sell to open -1 6E JUN 17 1.0900

no stop

Target: the underlying to trade above short strike price of 1.0900.

Time horizon: 20-30 days.

— Edited by Martin O’Rourke

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