FXY under pressure

The yen, here represented by FXY, is under pressure.

fxy-chart-2016-10-04_21-43-16

Pretty obvious just looking at it that my FXY October fly trade is under pressure. (The underlying looks worse!) The context is ominous, with the market once again pricing in a rate hike from the Fed and of course the yen is super sensitive to this. I took it for granted that the “pricing in” thing was done for September and that I had some time to let this trade work. Let’s see what happens.

fxy-oct-fly-2016-10-04_21-43-16

So, I’m a glutton for punishment because I put on another one for November that doesn’t make the overall position look all that much better — it’s not supposed to work that way. But hey.

This is November –>

fxy-nov-fly-2016-10-04_21-43-16

And this is the two positions together –>

fxy-oct-and-nov-fly-2016-10-04_21-43-16

 

 

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4 thoughts on “FXY under pressure

  1. Hi Lonely,

    how are you? Quick question out of the scope of this article since I do not have a your direct contact. I m thinking about expanding my knowledge into the area of options. Are there any resources you found valuable when starting and getting your head around options? I am looking atm at Tastytrade but although I believe there is a great amount of content it is hard for me to find any type of learning structure on that site (except for those two kids teaching what options are). Of course, there is about a billion other sites, but experience taught me to ask first before taking the pain and figuring it all by myself the hard way. Thx a lot for answer.
    Have a good one.

    lechiffre

    Like

    1. Yeah man I do… I learned from Gavin McMaster at http://www.OptionsTradingIQ.com. He does things a little differently than I do today — he isn’t a “trade small, trade often” kind of guy. Mainly trades RUT, NDX, SPX, etc. He has written some very concise eBooks that I have read and strongly recommend. Unfortunately, he writes to an audience that has a basic understanding of options, but don’t let that stop you from reading his eBooks. They are inexpensive and very quick reads. Just search for “Gavin McMaster” in the Kindle Bookstore. Study his blog (at the website above) while you’re reading the eBooks. He will also answer your emails.

      Another great resource — amazing really — is the education page on http://www.OptionAlpha.com. Kirk DuPlessis has done a fantastic job of developing very digestible course materials in Beginner, Intermediate, and Advanced “Tracks”. You can find those here –> https://optionalpha.com/members/tracks. He has a subscription service, about $50/month, that I was a member of sometime back. I got a lot out of it and many others have as well. I am much closer in my trading to his approach than any other I’ve come across. I sometimes put on the exact same trades he does, in fact. Kinda weird.

      Anyway, I think you should start with Kirk’s site and work your way through the lessons, but also follow Gavin’s blog and read his books. It’s a steep learning curve, but eventually everything will begin to make sense. Stick with it!

      You can email me directly at T H E L O N E L Y T R A D E R AT O U T L O O K DOT C O M anytime.

      Liked by 1 person

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