Trade Alerts, Trend Reports and Opinions by FX Options
New Zealand Dollar Trading OUTLOOK
August 16, 2011 at 11:42 pm • Posted in Trade Alert
NDO (NZD/USD): further USD decline expected
| Pivot: 81.5 |
| Our Forecast: Up move towards 85 or even 88. |
| Comment: The pair has rebounded on its support and should post further advance towards its previous high. |
To leverage our Trend Opinion on New Zealand Dollar, we selected the following strategy.
| Option Strategy |
LONG PUT |
| Action |
Buy to Open |
| Last Price |
1.10 – 1.20 |
| Target |
At or above 2.3 |
| Stop loss |
At or below 0.9 |
| Option Details |
| Type |
NDO |
| Strike |
CALL |
| Expiration |
86.5 |
| Option Ticker |
Oct 11 |
| Option Market |
NZD/USD |
| Currency Rate |
|
| Currency Ticker |
New Zealand Dollar |
* Volatility Cones can be used to visualize current option implied volatility relative to historic volatilities at different maturity ranges
* Historical volatility measures actual market fluctuations of an underlying asset. Implied volatility is a measure of market expectations regarding the underlying future fluctuations.
