Wednesday, February 17, 2010

Profit From The Euro Going Up or Down

FXE has rebounded sharply, apparently due to concerns over Greece greatly diminishing. Those concerns are still quite valid in my opinion. What will the Euro do, will it rise further, or fall down again?

Here are straddles (strangles) for FXE for February and March. With straddles an investor can profit regardless of whether the underlying stock goes up or down, provided it moves the minimum necessary amount.

Computed with our StraddlesCalc Tool. The actual move required may be smaller, particularly for March options. The February versions, although requiring only a move of about 1%, have the risk of both ending up worthless if FXE ends up between $137 and $138. This is a very risky move for this month.
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 diligence. This is not advice. Options are very dangerous and may cause 100% loss.

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