Wednesday, December 9, 2009

Profit From Japan Stocks Or The Yen Going Up or Down

The crisis in Japan is serious. For the moment, the Yen is overvalued as companies repatriate funds to take advantage of a tax holiday. This uncertainty atmosphere is ideal for straddles.

Here are some for EWJ (Japanese index), and FXY (Yen trust). These are obtained from the StraddlesCalc tool, which indicates the maximum move requierd to achieve profitabiliy. Actual move may be lower if it happens with still time left to expiry, or if volatility increases (causing premiums to increase).

Note that liquidity is thin on FXY in the far out months. As for December, although the moves requerid are quite low, that is only 9 expiration days away, so very risky.

Note: You may receive technical analysis and alerts of these stocks, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Please do your own due dilligence. This is not adgive. Options are very dangerous and may cause 1o0% loss.

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