Being honest I don't have a clue what that means, except for the payout which sounds good! Options, right? Bullish on Eur/Usd? Am I close? Care to explain?
A corridor is simply a forward-start touch option. Any touch in which its date of origin > present time. This specific corridor pays from 1.4490 to 1.4650 on the 18th of Feb. Price and vol can trade anywhere in the interim, only 2/18/08 matters. In that respect, a corridor acts as an euro-convention which converges to an american at expiration.
A hit between the two prices pays the same, but a trade to the mipoint will return more [but less than max] as we approach expiration. Full payout can only be achieved when price intersects the barrier at expiration.
Thanks for the explanations. I don't know how you guys predict weeks ahead, especially not in the current conditons, the next 15 minutes is about my limit, if that! I hope the trade works out for you.
I was long Eur Sun night but my position was under water on Monday, I decided to add a little more at the lows and was able to pull out with a profit today. Was not an easy trade since I don't like to stay in so long but I could have done even better if I had a higher profit target.