A smart exit -- especially considering what holding would have done... I like/understand the index trades better. Currencies have a lot of volatility to them.
I agree I noticed that currency whip around way too much and the premium being received for selling a no touch is not reasonable on a risk:reward basis. That leaves me to the conclusion that It might make sense to just trade outright touch exotics directionally similar to going long call or put.
Thanks. pound/yen stat vols are trading almost 2:1 over implied. I am kicking myself for not buying a touch under the market; so I am going to play some touch gamma until I see vols representative of what's going on in the spot-market.
This JPY advance is pure chaos for trading the Nikkei. Was short the [facocked] Jan 15250//16000 outside strangle, but bought back the 16000 calls and doubled the puts/futures hedge converting to a slightly-weak synthetic short straddle at 15350 neutrality. Delta bleed rallies the neutrality over time, but slowly. Short a bunch of the Feb 15500 combos at 1100. The plan is to fly them off with each 100 in edge on the short combo. 10% converted to fly at each handle in gains. It's a nice market for P-coast traders as the cash market closes at 10pm. Large contract and the best vol[14% atm] of any of the G8 index markets. ATM spreads are typically 10-wide[$40] and indicative of spreads across the strikes. Excellent for straddles, overwrites, ratios... I recommend you guys take a look at SGX Nikkei futures and options. Ticker "SGX NK" on IB.
I feel confident that the index vol-trade for the month is selling the ER2 JAN 680 straddle >30.00. Vol-line of 18%+
thanks...wish I could make good use of a spiffy terminal like that one. Or even just have one around the house to fool with.