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Saturday, May 29, 2010

The Seagull

Zero Cost Strategies for Forex Option Trades:

Short Seagull E.g:
Buys EURUSD PUT at 1.4220
SElls EURUSD PUTS at 1.4000
SElls EURUSD CALL at 1.5275
Total cost +$19
Risk is EURUSD go above 1.5275.

Bullish SeaGull E,g
Buy 121 USD call JPY put
Sell 125 USD call/JPY put
Sell 118 USD put/JPY call
Breakeven 121.68