Back in business

Good morning traders,

I'm back from my regularly scheduled deployment.

It took a couple of weeks to get back into trading after essentially 5 months of no access to my currency platform, and severely limited internet access for stock and options trading.

Here's a couple of pics and a video from my latest jaunt throughout the Pacific:

 

Above is barbecued chicken and baby octopus with a sweet and spicy sauce from Busan Korea

And here is our maintenance officer during an intercept of a Russian IL-38 near the sea of Japan.

 

 

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On Thursday I was able to pull 98 pips by shorting Aussie against the US Dollar. I use a 4 hour chart, with a 200 period moving average as a trend direction indicator. I'm using Parabolic SAR as an entry trigger when price action is below the 200 MA.

 

I had good luck with this during my summer break, and my first trade back is validating the strategy for me.

 

 

As always, comment if something catches your fancy or if you have any questions or want to talk stocks options and currencies.

 

Keep trading,

STT







I'm a fan of Yen right now.

Here's an FB picture of one of my tankers headed out to do it's duty. I work on the Aerial Refueling Store that hangs on the centerline station.

Anyway, I'm back in Japan for couple of weeks before I go back out to sea to complete this year's deployment. I didn't trade for the week I was back, but then the currency bug bit and I started going over setups. On the 27th, I entered a USD/JPY range trade on the 4 hour chart that just ended swimmingly at my 200 pip target.

Nothing special, just a range trade. I drew the channel lines after the trade closed to watch if the price action will break the channel over the next couple of days.

Happy to be back. As always, comment on the blog if you see something of interest, or have any questions. I don't just post winners, so go back over some older posts and check out what not to do.

Good Luck trading,
STT

To Trade, or not to Trade

Good evening traders,

On Monday I placed an entry to long NZD/USD at about .7945 as the pair moved above the Ichimoku cloud in the 4 hour chart.

The above chart illustrates what I was looking for at the time. Price action was above the cloud, and NZD was showing strength against most pairs over the previous couple of days.

I had recently come off of a 184 pip winner on Aussie using a 50% retracement strategy to enter, and I placed my long NZD/USD entry based on a similar chart formation.

After failing to get tagged in at my entry, I pulled my order due event risk on the economic calendar.

 

As you can see, the FOMC meeting is placed above all other news on Wednesday, and for good reason.

The market unilaterally bought the USD dollar against most other assets and Indexes in the close of Wednesday's New York session.

I managed to sidestep a nearly instant 53 pip loss.

Here's the moral of my quick story. Don't be so focused on technical formations and patterns that you're not aware of events that can move the market. It's ok not to enter if the fundamentals, technical and news don't line up. If the story behind your trade changes, change your trade with the story.

Since the major event risk is past us, I'm looking to possibly short Cable against a 50% retracement of the FOMC drop, or 1.5550. Over the next couple of days I'll look for a manual entry, and bounce it off of next week's calendar.

Comments and questions are welcome. Follow the blog and check in regularly for updates. Let's start a conversation!

Thanks,
STT

Yen let me down, Aussie bailed me out

Since trying to climb Mount Fuji in the currency markets earlier this week left me rolling down the side of the mountain, I decided to act on a setup that I saw on the Aussie dollar.

Thinking that weakness in the USD might continue into the end of the week, and noticing that the Aussie was showing strength, I placed an entry order on the 50% retracement of the reversal leg off the bottom.

 

 

The halfway back entry is something that I picked up from watching Tim Racette's videos over at Eminimind. He trades mostly Euro and S&P futures, but I've had good success using this entry style on many different currencies securities and stocks.

 

Basically, when you see a leg that's moving in the direction of the trend you want to follow, find the halfway back point on that leg, and use that as your entry point. I then use the 72% retracement area as a stop. If I'm using a targeted trade, I look for 2 times my risk, but often I'm looking to enter a trend, so no immediate target is placed.

 

On this particular trade I had no target initially, but after running for nearly 185 pips, I just banked the profits, and I plan to reevaluate entering a longer term entry next week.

 

Drop a comment if you use halfway back for entries, or want to discuss your own entry strategies.

 

STT

I can see Mount Fuji from here...

Good evening Small Time Traders,

I just went long USD against JPY at about 96.4, stop is 94.9, target is 99.

If price action touches 97.5, I will move the stop up to break even, and look for a test of 99.

If price breaks the trend line on a daily close basis, I want to be out of the trade.

For those that don't trade, I'll throw you a bone. Here's a look outside the apartment from last September. I really can see Mount Fuji from here.

Comments, questions and conversations are always welcome.

Let me know what you're trading,
STT

What's the Risk?

Good evening Small Time Traders wherever you may be.

Managing risk is one of the facets of trading that many including myself still struggle with. I continually have to resist the urge to add one more lot to a Forex trade, or one more contract to an options trade. I also have to fight off that quick "what if" thought that I have whenever I have a successful trade. I make the mistake of thinking how much more I would have if I had added that one lot or contract.

I started trading in 2009 with common stock, and then moved to options in 2010. I'll be the first to say that my trading style is erratic. I have made attempts to formulate consistent strategies, but due to employment and other life factors, in this I have been unsuccessful. This haphazardness nearly blew me out when I first started trading. I was lucky to have unwound my losing position (yes one position nearly destroyed my account), with 65% of my account left. I would have a trade idea and put it on. Then another and another until I was leveraged to the hilt.

One of the most ground breaking discoveries I had in my own trading was after I became involved in the Forex market. That you can trade smaller amounts, and make more money. My Broker is very good about making educational resources available to new traders. The tutorial videos for trend following and risk management from DailyFx are all over YouTube. There are daily articles about setups and stops, technical analysis and outlooks and many other resources for those that trade currencies and gold.

Contrary to what seems to be popular belief, I don't personally think that my broker is out to bamboozle me out of every last cent or yen by stacking the market against me. That makes no sense at all from a commission based, or spread based profit model. Brokers know that they make more money over the long term by cultivating an atmosphere of trust in the trading tools and advice provided, and by producing significant numbers of competent, active traders that are successful and pay commissions or spreads for life. It's a subscription business model. A magazine publisher would not expect to make a fortune by selling a magazine that a reader would only want one issue of, that further causes the reader to hate the publisher, and would result in that reader not buying a magazine from any publisher. The reader would suffer, the publisher would suffer, the publishing industry would suffer in this example.

So for Forex trades, I limit myself to 5% total risk exposure at any one time. Most of my trades are around 2.5%, and I rarely have more than two trades on at any one time. If I do, it's because one of them is well in the money being tended to with a trailing stop, also in the money. Even if I get 10 trades wrong in row, I'm still in the game.

I use the same rule for options trades. For example, working with $50,000 capital, 5% risk is $2500. This should be your max at risk for all open option positions in an account of this size.

Keeping it small time, If your micro account had $200 of trading capital, 100 pips of risk on a single lot is 5% of your capital. Same for a mini lot for a $2000 account, or a single standard lot on a $20,000 account.

Here's how that works with a couple of my recent trades:

Using my personal 2.5% limit, I went long EUR/USD at 1.297 with a stop at 1.292, targeting 1.31. There was 50 pips on the line, or $5 in a micro account of $200. If I was to get burned for a full stop, I would still have 97.5% percent of my trading capital remaining.

I closed out at 1.31 for 127 pips. My account now sits at $214. I can now risk 107 pips and be within the 5% rule.

In the options market, I purchased a TIF Jan 18 '14 $72.50 call for $9.85. Now, the way my equity portfolio is layed out, I am roughly 65% in stock positions and bond funds with 35% in tradeable cash. The $985 I have at risk in the call is about 3% of the portfolio value.

I have one other options position in GNC, but having paid for it by selling options that are closed, only profit is at risk.

My trading focus lately is on finding better trades, increasing my batting average and reducing blowout risk to the extent possible in my accounts.

Follow me on twitter @B50cal1978.

Please leave a comment if something in the article strikes your fancy.

Thanks for your time,
STT

Who's your Cable provider?

Good evening traders,

From a Forex Factory forum post by user RoBik:

"Before the advent of radio, the only means of communication across the Atlantic Ocean was to physically connect the continents with a transatlantic telegraph cable, which was operative in 1867. The exchange rate between the United States dollar and British pound is still colloquially known as "cable" by financial marketeers on account of the fact that the rate was originally transmitted via a transatlantic cable."

I've done ok this year on most of my cable trades because the Pound Sterling has continued to lose value against the US dollar for most of the year. Early this week, after taking a shot going short EUR/JPY and getting burned, my next setup search yielded quite a little gem that helped recover most of those losses.

Looking back about a week on the 4 hour timeframe, you can see the hallmarks of a downtrend. Lower highs and lower lows. Sold short at $1.5105, my stop was at the last swing high, and my limit was the bottom of the candle body (excluding the wick) on the reversal candle of the previous swing low. Bread, butter and jam for 72 pips.

Post a comment. Let me know about something you'd like to see on the blog. Drop a line about a trade that worked for you.

STT

Finding Zen

Good day to all you small time traders wherever you are.

One of the most fascinating things that I've found while researching people who are successful in trading is that they seem to have one thing in common. They search to find a balance between their trading life and their real life. The most common schedule seems to be to spend about an hour researching setups, and then to trade for about two to three hours after the market opens. Then, win or lose that day they turn the trading station off, go outside and do their favorite physical activity. Check out Eminimind.com in my Most Valuable Links for an example of this lifestyle.

I would love to put this into practice one day.

So in my search for the application of balance in all things, I find it appropriate to focus on zen and balance in this post. Here are some pictures I took recently near the Hasedera shrine in Kamakura, near Enoshima Japan.

Good luck trading next week,
STT

Gold still glitters... A little.

I only took one trade over the last the week. I've been particularly busy at work, and haven't had the time to research my setups to the degree that I require to have conviction to enter.

My GLD trade was as basic as you can get. Here's a 3 month chart of GLD:

I looked back to April 15th at the close price of about $131. On Friday, May 17th, I noticed that the closing price was right around that same level of $131. Even though there is a downtrend in place, the April 16 bounce indicates a presence of buyers at the 130 level. The thesis of my trade is that the test of this level will again result in a bounce, even if it fails later.

I placed my entry order before the open on 20 May to purchase a GLD Jun 22 '13 $135 call for $2.15. I was filled at $2.10. The next day, I put in a limit order to close the trade at $4.20, and on the 22nd I was filled.

Not alot to this one, but the lesson is that these opportunities are many no matter the vehicle that you chose to trade. Whether it's common stock, options, forex, or futures, major levels of support or resistance are great levels to scope out viable trades.

Drop a line if you have questions or comments. Follow me @B50cal1978 on twitter. Anything that I have a high level of conviction on, I will tweet.

Don't forget to check out the killer links to the right.

Happy trading,
STT

Japan has been good to me.

In more ways than one, Japan has been good to me.

First, my wife just got back from the market in Yamato with a new Chu-Hi that I have not had before. Made by a company called Oenon, it's about 6% joy with 2.5% juice. Love you baby.

Second, I had a good result for my long USD/JPY trade that played out over the last week. As in a previous tweet (Don't forget to follow me @B50cal1978), I noted that I was long 2 lots of USD/JPY at about 100.20. I had a 100 pip trailing stop that brought my exit up to 101.81, which was hit on Wednesday for a gain of about 160 pips.

I have been trying to enter the Euro short against the USD last week, and over 3 trades trying to enter, I am negative 12 pips. First trade was on a break below 1.30 of which I banked 38 pips, and put a new entry for a break below 1.295. Got stopped out on that one. Later in the week I went for an entry below 1.2930, got filled. Eventually, this position was positive by 50 pips and I brought the stop up to break even. At this point I was hoping to begin trailing in some profits, but this was not to be. And my third attempt to enter Euro short was stopped at break even.

This week, I'm looking for a corrective rebound in gold and the Australian Dollar. With gold, I'll be using the GLD, and I have an order in for a GLD Jun 22 135 call to play an anticipated correction back into the 137/140 level in the GLD ahead of further declines in gold.

Because of the oversold nature of AUD, I'm going to looking very closely at going Short Euro, against the Aussie.

My experiment in Currency ETF's and Reverse Iron Condors continues. My aforementioned monthly RIC in FXE was closed for a slight profit, and FXB was closed for a slight loss. For those that follow currencies, had I been able to get enough volume to get filled in my May RIC for FXA, I would have gotten full profit. There is very low volume in FXA, so I was never filled.

I have anecdotal data from a trader on the Seeking Alpha website that had a 75% success rate (9 out of 12) using a Reverse Iron Condor strategy on Google (GOOG) with his long strikes set at a Delta of 20 to 22 on entry. I am interested in this, and have a order in for a GOOG RIC to expire Jun 22, with the long strikes at a Delta of 23 on the call side, and 25 on the put side. My short strikes are $10 out from my longs, so possible ROI on the trade is about 125%. Update to follow in June.

Comments and questions are welcome. Let's get a conversation started.

STT

Status of Forces

Hello small timers,

Here's a snapshot of my currency trades as they sit right now.

Short USD/CAD:

I'm short from 1.0085 on a purely technical look, based on my SMI (Data below Signal, both below 0) and price action below a rolling over 200 period moving average on a 4 hour chart. I am using Parabolic SAR to trail the stops and have moved my stop about 40 pips to the good.

Entry orders for Long USD/JPY above 1.00. One lot at 100.00 and one lot at 100.25 each with a 50 pip stop. I believe that if there is a break above 100 that there will be follow through based on the last 2 news inspired breakouts.

Follow me @B50cal1978 on twitter, I do my bet to tweet changes and entries on my positions. Drop a short comment if you have a question or want to weigh in the trades.

I'll post soon with an update on my options positions when I have time. I've entered a 144c/144c/140p/139p Revers Iron condor in GLD expiring 18 May.

Cheers to those who are viewing, vote on the poll if you have moment. Better yet, drop a line suggesting a poll on a subject of interest.

STT

In for a pence, out for a pound

Good evening small time traders wherever you may be. Feel free to drop a comment or question.

I haven't been able to post for a little while due to work. I wanted to share a successful trade to balance some of the bad trades that I have posted lately.

Here's 229 pips banked in GBP/USD:

For those of you that follow me on twitter @B50cal1978 I posted when I entered the trade at 1.52470 on the 24th of April (Japan time). I entered this trade specifically because of the potential for exacerbated movements based on multiple news releases.

Regardless of the movements of the S&P 500, Economic fundamentals in the U.S. are generally disappointing, while fundamentals of the U.K. are generally exceeding expectations since the beginning of the year. Here's the high importance economic releases from last week:

So, while I was chillin' in Osaka, I figured that if Cable (GBP/USD) went my way on U.K. GDP, that the move could be further extended by bad U.S. GDP data. And, in an extremely rare case for me both went my way, and I happened to get a good entry before the data by chance.

Trade management was easy. It was a single lot trade with 50 pips initial risk, with the stop trailed manually according to the Parabolic SAR dots as they appear under the 4 hour bars.

This move could also be positive for my Reverse Iron Condor options trade on FXB. More to follow.

Thanks for your time if you've read this far.
STT

Currency Condors spread wings and Identifying new trends.

So, my week long test drive of FXE did not work out as I had planned. But by exploring the possibilities of using currency ETF's as viable Reverse Iron Condor trades, I have come across an interesting phenomenon.

A trade on FXE or FXB can be set up for a good risk/reward ratio for times that extend far beyond that of weekly options.

First I'll go over my trade entries this week, and then I'll bring it back to the currency ETF's and go over why I chose the trades that I did. The entries are:

• FXE May 18 '13 130c/132c/129p/127p RIC
• FXB May 13 '13 152c/154c/151p/149p RIC
• C Apr 26 '13w 46.5c/47.5c/45p/44p RIC

The currency ETF's are interesting in that if you compare it with something like GLD, which has a similar price point to FXE, You'll see that you pay more premium for a shorter period of time to expiration based on the anticipated movement. Lately, the GLD may not be the best example for this due to it's generational decline last week. But a comparison of the price action of the last couple of months may point to why it may be better to have a monthly RIC in FXE, vice a weekly RIC in GLD.

Mid week pause for writers block...

Hmm. It's going to take much more time for me to get together this data for the comparison in GLD and FXE than I thought. I'm on vacation in Osaka, and this is the first month that I've even tried FXE, FXB and the other currency ETF's anyway, so more on that later I guess.

Update on this weeks trades so far. C is nearly in the money after the Tuesday U.S. session, as is FXE. If there is follow through tomorrow, the C trade may close profitably before the end of the week. There is still much more needed to the downside for FXE to profit, but with the problems in Europe and three weeks until expiration, a good chance for profit remains. FXB has not moved at all, but with 3 weeks for news events on the Economic Calendar, FXB is still wide open.

With Currencies, my breakout strategy is off. The robots have been shut down. As I get the picture for how my current strategies are playing out I'll get more into explaining what I'm doing. Basically I have moved to a strategy of manual entries in the direction of a trend. Using the Parabolic SAR for entries and stops, and FXCM's SMI or Stochastic Momentum Indicator as a trend filter. Here's how my screen looks with my current AUD/USD trade short:

Ok, so using the SMI as an trend filter, my clear bias for Aussie in this example is to sell the AUD against the USD. this I have done on the first reversal opportunity on the 4 hour chart after the SMI showed the bearish crossover. So far so good. My plan now is to trail down the stop with SAR dots manually whenever I get on the trading station. The most current picture shows a couple of green dots showing that price action may reverse. So, to allow price some room to move around, I have stopped trailing until I get another red SAR dot showing resumption of the trend.

Then, since my first lot is profitable, I will enter with a second lot on the reversal to capitalize on a bigger breakdown.

Cheers from Osaka.
STT

Still stuck in the mud

Quick update.

Both the Citigroup and FXE weekly Reverse Iron Condors for the week of 19 Apr have failed.

C spent the week chopping above and below $45 and ended at 45.03. FXE spent the week chopping around 130 and ended at 129.47.

Life beckons this Saturday. I will do a full post later on in the weekend.

I have a different way to play the currency ETF's that I believe will increase the odds of a postive outcome for the RIC trade. For Citi, I have changed the way I look at the strikes that I use to enter a RIC. More on that later.

May the profits always find you.

STT

Of GNC, and GLD...

First, prayers and well wishes go out to all of those affected by the tragedy in Boston.

One of the most interesting ways to enter a long stock position is by selling a put for the underlying security which you desire. There is significant risk in this strategy, and it also requires margin, or cash put up to your broker to cover losses if there is any. Often called a cash secured, naked put.

There's good news and bad news with put selling, so I'll start with the bad news first. Then, I'll show a variation of put selling that can result in great gains vs. capital outlay if the stock moves your way. I have examples of both in my portfolio right now.

Bad news: INTC

Opened on 5 September 2012 for a net credit of $75 after commissions.

Put 100 shares at October expiration, and here's how they sit today:

My entry to those 100 shares is about $22.50 a share. I've been getting that 4% annualized yield, but I'm still not in positive territory.

Enter the variation. The Risk Reversal is a way to get long an option by selling the opposing option when the trade is opened. It requires the same margin/cash and has a little more risk than selling the naked put. This trade should never be entered on any stock that you would not be happy with owning the shares at the put strike, or significantly lower. One other caveat: I don't ever sell a call to finance a put. When you are short the call, and the stock appreciates in the money before expiration, you owe the call writer those 100 shares and you keep nothing. So, here's the good news.

Good News: GNC

The best trade by far that I have in my portfolio right now is the GNC Sep 21 '13 $32.50 Risk Reversal. The Risk Reversal is initiated by selling a put, and using the proceeds to finance the purchase of a call in the same security at the same strike. Most brokers will allow this to be placed as a spread to save on commissions instead of buying each option separately. Here's what mine looked like:

So, for $75 after commissions, here is what it looks like after yesterday's close:

The spread has a current value of $925.00, and does not expire until September. The trend on the chart looks good. Valuation is not extreme as the earnings continue to grow. And I am planning to stay in the trade until GNC's share price is $47.50, or $37.50, whichever comes first. I also plan to close the put side of the risk reversal at the soonest available opportunity, so if there is a decline, the double whammy of increased implied volatility in the put as the share price comes down does not work against me.

Gold. GLD. Wow.

It looks like I have the increase in gold volatility that I was hoping for.

As I type, the futures in gold have stabilized, though they are rolling over the $1375 level and passing down through $1365. If we continue to have downward momentum towards yesterday's lows at 1330, I will be placing a trade called the Iron Condor that lives for Volatility spikes like this. If GVIX is above 20, and the market is stable, the trade will look like this, though the numbers will be different when the market opens up today.

I am looking for a net credit of about $225. My total net credit will be about 450, but I plan to close the spread as soon as I can get my $225. My total risk is $1550 if I get blown out, but to make $225 on $2000 of risk in 1 or 2 days justifies this for me. If this sounds crazy to you... It is. Don't do it in your own account just because I'm greedy.

Seriously though. This trade makes it's money on the fact that the implied volatility in the short options that you sold will collapse, allowing you to buy the spread back very soon. For example sooner than the market can move to either one of your short strikes. As outlined, I intend to close the trade ASAP after I put it on.

Also, GLD is back on for Weekly Reverse Iron Condors for me.

Questions and Comments are welcome. Follow me on twitter @B50cal1978. Be careful in your execution. Market Volatility looks to be picking up. Monitor your positions sizes, and preserve your capital to fight another day.

STT

Stuck in the mud

Just got done taking a killer bike ride around the perimeter of the airfield, and figured it would be a good time to post as I wind down this afternoon.

 

My post title refers to the worst thing that can happen to a trader that uses reverse iron condors. I was in the AAPL Apr 12 '13w 440c/455c/420p/405p RIC at an entry price of $5.15. I needed AAPL to move at least $4 above $440, or $4 below 420 to trigger my conditional order to close the call or put leg at $9.00 for a 40% ROI. This is only about 5% to one side or the other of $430, which seemed possible given the argument traders have been having over AAPL. The 5day chart shows what really happened:

 

 

I stayed in the trade on Wednesday due to the move of nearly $10 in share price that with any follow though at all would have resulted in at the very least having a shot to break even at 440, or profit above 445. Alas, on Thursday morning disappointing PC sales numbers were release that affected AAPL negatively. Apple is the third largest supplier of desktop computers sold in the U.S. and thus got killed by the numbers. And on Friday we got stuck in the mud by an options phenomenon called "pinning" that happens on expiration day as institutions settle large numbers of contracts often causing them to gravitate to a round level and stay there.

 

Here's how the trade closed:

 

 

AAPL was the only RIC I was in that expired on the week of 12 April. Due to rules of position size that I have for myself, though the single trade was a 100% loss, in the scope of my portfolio is only a 1% loss. The lesson here is that nothing is guaranteed, and that even though RIC's are one of the higher percentage strategies that are out there, It's important not to jump into water that's too deep.

For the week that expires on April 19, I have two RIC trades that are on:

• C 46c/47c/44p/43p entered for $.50 which is about as high as I want to go to enter when spreading the strikes out so far.
• FXE 130c/131c/128p/127p entered for $.34. With the US Dollar overextended, and acting poorly at the end of the week, I think there is a good chance that a pop in the Euro can take us into profit.

I will tweet and post the result of both of these trades when the result occurs. Follow me @B50cal1978. All comments and questions are welcome. Even if you don't comment, be sure to weigh in on the poll at the top of the blog.

As always, anything posted here is only my journey, and not a recommendation to trade any securities mentioned.

STT



How to capture volatility in Currencies with options...

One of the things that can be so frustrating about trading currencies is that they can be very random and unpredictable in shorter timeframes, such that even if your thesis regarding the direction of said currency can be correct, you may still get tagged out on choppy movements. This has happened to me more times than I care to count.

On currency trading platforms, one way to be directionally neutral is to find a ranging currency, and place entry orders above and below the range in the hopes of catching a breakout or breakdown. One problem, that I have found the times that I have attempted this, is that I will catch the breakout, watch as the price action drops down to tag my stop and carry on the anticipated direction.

Catching up to the present...  Lately, I have been doing quite well trading Reverse Iron Condors on volatile options. This has caused me, when I have time, to search for securities that are volatile.

Epiphany time. Currencies are volatile.

As a small time trader, I have not had the ability or means to enter the futures markets with a platform that allows me to take positions with options on currencies. Enter the CurrencyShares ETF's.

On my E-trade, I have spent the last week going over the viability of the different Currencies that are offered by CurrencyShares as ETF's and here is what I've found:

FXE, FXB and FXY seem to be the best candidates. Some of the others are interesting volatility wise, but will not work for RIC's.

FXA, for example, looks good on the surface volatility wise in the sense that you might get the required movement pretty easily, with a fair entry price vs. ROI. I just don't like the lack of volume.

Same with FXF and FXS. No volume to speak of in the options. FXCH and FXSG have no options at all.

So here's the trade. I am entering the 130c/131c/128p/127p Reverse Iron Condor expiring on April 20 for $.43

 



If I get filled for $.43 I will put conditional orders on each leg to close at $.85, or close to 40% ROI if the trade succeeds.

One of the good things I've noticed is that with other securities or weekly options, spreads this close have an entry price of $.55 or higher for 8 sessions worth of time. This trade has 10 full days of trading time for less than $.45.

I'll post how it turns out, as I may to this monthly, or will be adding FXB, or FXJ if the economic calendar of news so dictates.

As always, post any questions or comments you may have. I will be making an effort to post my trades and results on Twitter, so follow me @B50cal1978 for the latest.

Also, what I do is for the purposes of stimulating conversation, and the exchange of information and is not a recommendation in anyway to enter into any trade of any security mentioned.

May the profits always find you,
STT