LD Lossdog Research
symbol

6E

3 matching records.

Trade idea

6E strangle

The euro is considered the best currency for a strangle due to its liquid markets and the speaker's personal position as a long holder. The speaker is short puts in the yen and suggests that the euro's market is more favorable for options trading compared to the British pound, which has less liquid options markets. The speaker believes the euro will rally to 1.36 and potentially higher, with a stop-loss at 1.10.

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Strategystrangle
Assetcurrency
ExpirationMay
Time horizonshort-term
Entry / triggerMarket conditions suggest a potential rally in the euro
Target / exit1.36 and 1.45, with 1.50 as an ideal target
Invalidation / stop1.10 as a stop-loss level
SpeakerDave
Structure / legs
  • call
  • put
Risks
  • Market volatility
  • Liquidity issues in the British pound options
  • Failure to meet the target price
longForexlongstrangle6Eshort-term
high confidenceVerify in video at 15:08 ↗
Trade idea

6E sell calls or call spreads

The dollar is expected to rebound, which would likely result in a decline in the euro. To capitalize on this, one can sell call options on the euro (6E) as the most liquid futures options. This strategy assumes the inverse relationship between the dollar and euro, which is a common market dynamic. The trade requires futures trading approval and is suitable for traders with a $15,000 account.

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Strategysell calls or call spreads
Assetfutures
Expirationnot specified
Time horizonshort-term
Entry / triggerdollar rebound expected
Target / exitnot specified
Invalidation / stopdollar does not rebound or euro does not decline
SpeakerTom and Scott
Structure / legs
  • call spread
Risks
  • Market conditions may change the inverse relationship
  • Liquidity issues in the euro futures market
  • Need for futures trading approval
shortfuturesshort6Eshort-term
high confidenceVerify in video at 02:38 ↗
Q&A

Which currency is a good starter for a strangle and why?

The euro (6E) is recommended as a good starter for a strangle due to its liquid markets and the lack of skew in currency options. The speaker also mentions that the British pound (6B) is less favorable due to its smaller contract size and less liquid options market.

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Actionable takeawayThe euro is a better choice for a strangle due to its higher liquidity and better market conditions compared to the British pound.
6EOptions
high confidenceVerify in video at 15:08 ↗