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Auslanco - GBP/JPY and GBP/USD (newstrade)

  • #112,461
  • Sep 11, 2008 1:32pm Sep 11, 2008 1:32pm
Guys

I have a good trading idea, does anyone is using options to hedge current G/J positions?

I am planing to go long at 180 big time, but to hedge the short side using options at 174 or more with the same ammount of lots traded, this over a monthly period. My idea is basically, if the price reverses and continues up to lets say 200, then I will get huge earnings from rolls + pips over the longs losing only the premium of the hedge. Worst case scenario will be it continues from 180 to 174 or lower, and my longs are protected + I am making money over the rolls.

I need comments regarding this issue.

Thanks
The market can stay irrational, longer than you can stay solvent.
  • #112,462
  • Sep 11, 2008 1:38pm Sep 11, 2008 1:38pm
Quoting bmvmx
Guys

I have a good trading idea, does anyone is using options to hedge current G/J positions?

I am planing to go long at 180 big time, but to hedge the short side using options at 174 or more with the same ammount of lots traded, this over a monthly period. My idea is basically, if the price reverses and continues up to lets say 200, then I will get huge earnings from rolls + pips over the longs losing only the premium of the hedge. Worst case scenario will be it continues from 180 to 174 or lower, and my longs are protected + I am making money over the rolls.

I need comments regarding this issue.

Thanks
if your hedged, you wont be making money offa rolls, you'll be losing money.
  • #112,463
  • Sep 11, 2008 1:45pm Sep 11, 2008 1:45pm
Quoting fc3s
if your hedged, you wont be making money offa rolls, you'll be losing money.
do you owe premiums when you own the option??

You could sell covered calls as well .. if it works that way in forex. But for me options are way too complicated .. and the time factor can be a killer. I prefer the easy pips of straight forex trading
  • #112,464
  • Sep 11, 2008 1:50pm Sep 11, 2008 1:50pm
Quoting bmvmx
Guys

I have a good trading idea, does anyone is using options to hedge current G/J positions?

I am planing to go long at 180 big time, but to hedge the short side using options at 174 or more with the same ammount of lots traded, this over a monthly period. My idea is basically, if the price reverses and continues up to lets say 200, then I will get huge earnings from rolls + pips over the longs losing only the premium of the hedge. Worst case scenario will be it continues from 180 to 174 or lower, and my longs are protected + I am making money over the rolls.

I need comments regarding this issue.

Thanks
Why re-invent the wheel? Keep it simple!
  • #112,465
  • Sep 11, 2008 1:52pm Sep 11, 2008 1:52pm
Quoting bmvmx
Guys

I have a good trading idea, does anyone is using options to hedge current G/J positions?

I am planing to go long at 180 big time, but to hedge the short side using options at 174 or more with the same ammount of lots traded, this over a monthly period. My idea is basically, if the price reverses and continues up to lets say 200, then I will get huge earnings from rolls + pips over the longs losing only the premium of the hedge. Worst case scenario will be it continues from 180 to 174 or lower, and my longs are protected + I am making money over the rolls.

I need comments regarding this issue.

Thanks
i have a better option, simply kiss a random girl

if she slaps then long GJ else short.
  • #112,466
  • Sep 11, 2008 2:02pm Sep 11, 2008 2:02pm
There is JPY news at 1950 ET, GDP q/q .. might it affect the guppy?
  • #112,467
  • Sep 11, 2008 2:03pm Sep 11, 2008 2:03pm
Quoting forexlion
i have a better option, simply kiss a random girl

if she slaps then long GJ else short.
I hope it's a guy you're talking to .. otherwise going short will never be an option....
  • #112,468
  • Sep 11, 2008 2:09pm Sep 11, 2008 2:09pm
Dear Mr. Karmo...great place to shop!!!
We have here Tesco, but they do not have it

Just to say that I admire Your style
Quoting karmostaji
from walmart

I just sit with my hands tied to my legs lol
  • #112,469
  • Sep 11, 2008 2:21pm Sep 11, 2008 2:21pm
Quoting fc3s
if your hedged, you wont be making money offa rolls, you'll be losing money.
No no. listen, the strategy is really simple.

Rembemer that you are buying G/J, the option premium is exact the same as the position rolls, so if we buy an short option for 6 months, we wil be paying a $3,600.00 per each standard lot, but since you are making up to $3,800.00 per roll over, the transaction costs are free.

So were are your winnings? easy, in the long positions at the spot forex, you are buying long positions without the risk, if G/J continues to tank there would be no problem since you are 100% hedged, you will even make a little money over roll over.

The point is to make money betting on the long side BUT without the risk of G/J continue to tank!

the Premium its free since its being paid by your roll over. is as simple as that.
The market can stay irrational, longer than you can stay solvent.
  • #112,470
  • Sep 11, 2008 2:21pm Sep 11, 2008 2:21pm
Quoting bmvmx
Guys

I have a good trading idea, does anyone is using options to hedge current G/J positions?

I am planing to go long at 180 big time, but to hedge the short side using options at 174 or more with the same ammount of lots traded, this over a monthly period. My idea is basically, if the price reverses and continues up to lets say 200, then I will get huge earnings from rolls + pips over the longs losing only the premium of the hedge. Worst case scenario will be it continues from 180 to 174 or lower, and my longs are protected + I am making money over the rolls.


I need comments regarding this issue.

Thanks
I know a fella that makes out very well playing what yousuggest, but only if it goes against his open position in profits but, but mostly short dated options. LT options, unless u have a real good understanding of time/price factor, its pretty much giving your mney away in premiums


or just stradldle it and pocket the positive negative delta's very hi stress though hahaa
"Millionaires don't use astrology, billionaires do"
  • #112,471
  • Sep 11, 2008 2:24pm Sep 11, 2008 2:24pm
hmm... i guess fxcm doesnt have that option. never heard about it
  • #112,472
  • Sep 11, 2008 2:28pm Sep 11, 2008 2:28pm
dj rised about +200 from opening but yen pairs hold on(ey,gy)...bears waiting assia season.be careful to EY,it can fall down 200 pips assia season...
good luck..
  • #112,473
  • Sep 11, 2008 2:29pm Sep 11, 2008 2:29pm
I remain strongly bearish looking for new lows in the coming sessions
Trade what you see, not what you think.
  • #112,474
  • Sep 11, 2008 2:33pm Sep 11, 2008 2:33pm
Quoting karmostaji
I remain strongly bearish looking for new lows in the coming sessions
dear karmo for 180 or 175
  • #112,475
  • Sep 11, 2008 2:36pm Sep 11, 2008 2:36pm
Great idea!
It should work from my point of view!
You may have problems in the conditions you have as a private investor!
We used to do such games for a triple AAA bank in Switzerland and made tons of money (for the bank!), as we had top pricing!
For a private the problem will be the fees....



quote=bmvmx;2214341]Guys

I have a good trading idea, does anyone is using options to hedge current G/J positions?

I am planing to go long at 180 big time, but to hedge the short side using options at 174 or more with the same ammount of lots traded, this over a monthly period. My idea is basically, if the price reverses and continues up to lets say 200, then I will get huge earnings from rolls + pips over the longs losing only the premium of the hedge. Worst case scenario will be it continues from 180 to 174 or lower, and my longs are protected + I am making money over the rolls.

I need comments regarding this issue.

Thanks[/quote]
  • #112,476
  • Sep 11, 2008 2:36pm Sep 11, 2008 2:36pm
Quoting bmvmx
No no. listen, the strategy is really simple.

Rembemer that you are buying G/J, the option premium is exact the same as the position rolls, so if we buy an short option for 6 months, we wil be paying a $3,600.00 per each standard lot, but since you are making up to $3,800.00 per roll over, the transaction costs are free.

So were are your winnings? easy, in the long positions at the spot forex, you are buying long positions without the risk, if G/J continues to tank there would be no problem since you are 100% hedged, you will even make a little money over roll over.

The point is to make money betting on the long side BUT without the risk of G/J continue to tank!

the Premium its free since its being paid by your roll over. is as simple as that.

That is actually a brilliant idea. My target is 180 as well. With your method, I would be able to play both sides and earn swap. hmm...something to think about.

B
  • #112,477
  • Sep 11, 2008 2:39pm Sep 11, 2008 2:39pm
attention for see 180 or 175 , we must have a weekly close below 106 for sushi
  • #112,478
  • Sep 11, 2008 2:39pm Sep 11, 2008 2:39pm
Quoting chris747
Great idea!
It should work from my point of view!
You may have problems in the conditions you have as a private investor!
We used to do such games for a triple AAA bank in Switzerland and made tons of money (for the bank!), as we had top pricing!
For a private the problem will be the fees....
Can you elaborate a little over the fees problem?
The market can stay irrational, longer than you can stay solvent.
  • #112,479
  • Sep 11, 2008 2:40pm Sep 11, 2008 2:40pm
hi forexlion dear bro
  • #112,480
  • Sep 11, 2008 2:43pm Sep 11, 2008 2:43pm
Quoting karmostaji
I remain strongly bearish looking for new lows in the coming sessions
At 0 GMT if GJ closes the day candle below 187.5 then i will open another short all the way to 172.78

148.19 to 251.07 fib levels, currently below 38.2% at 187.5
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