Wednesday, March 24, 2010

Profit and Protect From the Upcoming Chaos in Currencies: U.S. Dollar, Euro and Gold

In light of all the recent events going on with Europe (Greece bailout, I.M.F or not, Spain default, etc, etc,, etc,), currencies are in near chaos. What will happen depends on too many factors. if the US is forced to bailout Greece, then the US is basically aiding Greece causing all sorts of nasty effects on the Euro, the US dollar and possibly gold. Then there is China's surprising trade deficit, and Japan's tragic fiscal situation.

Our favorite way to play them: straddles. here they are for UUP, FXE, and GLD.

Computed with StraddlesCalc Tool which shows the maximum moves required to achieve profitability. The moves are for April straddles and are all under 4%.

Please do your own due diligence. This is not advice. Options are very dangerous and may cause 100% loss.

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