fxe, xde? anyone trading options against their Euro positions? i wanna sell puts against my short position.. any recommendations?
I need both eur and usd to go down I'm long aud.usd and gbp usd and short eur.aud and eur.gbp and until today have been losing my ass it's one of those, "Never wrong, often early" trades. whatever gbp gives me, aud takes away at anyrate, you asked, that's how I'm trading against eur and usd
Yea... I know their are risk currencies and different plays... I'm just wondering if anyone plays options amongst their positions
Specifically, you are long AUD and GBP as priced against the EUR and USD currencies. Not that you seem like a trader who's into this sort of thing, but your structured in a way that a position in EUR/USD could instantly shift your US Dollar bias for AUD and GBP > Like, your long AUD & GBP basket could be shifted entirely against short USD or EUR with equal part positions in EUR/USD. I'm holding AUD/USD long over this weekend, though it's not a big position and had I remembered it was on before the day's close I probably would have flattened out. Oh well.
If you're holding the ETFs (you mentioned FXE) as your underlying exposure, then options on them could work just fine. ICE has some options on currencies, but you can't really trade the underlying.. just the options themselves. (Talking about their equity option style offering, not options on futures, which I'm not sure about when it comes to ICE.) However, with the ETF options and ICE currency options, you are limited by the regular trading hours of equity options.. and the Euro and other majors can be driven by their own timezone just as well as the NYC session.. so not crazy about the limited timeframe on a 24/6 market. If you're trading spot, there isn't many 'options' out there for you to trade options against your existing position. Barx does it for larger clients / institutions, I believe, but most retail providers of vanilla spot options (IG, Saxo, etc...) are priced very horribly spread wise and aren't 'combined' with their spot contracts (cash settled, margin is separated for both products. Shit sucks yo.) Options on futures for CME seems like a good place to dig further.. Globex seems liquid enough on 6E's option chain. It's not Spot, which is my main digs, but at least they products are properly tied together. I don't have any experience myself for options on futures through.. so maybe someone else could chime in?
Sure your basket trading with your views.... to disperse your single currency risk... but what about my question
Well if your trading a currency against the USD a etf that's cash settled I think would work.... like xde or fxe .. think about it.... yes anyone know please chime in
If it meets your needs, options on FXE doesn't sound bad, and spreads/liquidity seems ok (not great, but not the worst I've seen.) I'd just rather trade the underlying contract (futures) or spot than an ETN based on them.