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OPENING: IWM DEC 16TH 136.5/JAN 20TH 140 CALL DIAGONALTruth be told, I'm not a big fan of low vol strategies such as calendars and diagonals, but am going to putz with one here. From a trade management standpoint, the notion is to take off the short call at or near worthless or roll it to the Jan expiry for additional credit, resulting in a Jan 20th 136.5/140 short call vertical. You then manage the setup as you would any credit spread. As with calendars, this particular setup doesn't have a set profit potential; the profit will entirely depend on what occurs with price and whether volatility expands. However, the front month, short option's theta will decay faster than that of the back month ... . Filled for a .01 db.
AMEX:IWM
by NaughtyPines
2
FX CHART OF THE DAY: AUDUSD ON RISK OF FURTHER DECLINEAUDUSD confirming another test of its downtrend on weekly basis, by bouncing of lower 1st standard deviation from weekly (120-h) mean. Expanding volatility (marked by 3.2 standard deviations from weekly mean) is confirming the risk of further delcine. Traders can take short off the lower 1st standard deviation (at 0.6940) and stop at the weekly mean (at 0.7010). Traders should also mind the AUD calendar news incoming over the next 2 days!
Short
by Killy_Mel
FX CHART OF THE DAY: EUR LIKELY TO REVERT UP TO ITS MEANAfter a sharp up move earlier this week EURUSD has retraced its gains significantly. However it did not yet enter a downtrend on weekly basis - price is returning to its 1st standard deviation from weekly (120-h) mean amid compressing volatility (marked by 3.2 st deviations from the mean) Thus the price is likely to revert up to the weekly mean within a day or two Traders can pick long positions close to lower 1st st deviation from weekly mean (1.1270) with stops below relevant lows (at 1.1190) and target the mean (at 1.1410) Traders also should mind calendar events coming out on FRIDAY!=)
Long
by Killy_Mel
1