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FxWirePro: Speculate USD/JPY using binary puts for TP of 123 but credit spreads for hedging

In the interest of speculators we see buying opportunities in USD/JPY binary puts at every rise for a target of 123 levels. 

Option Strategy: Credit Call Spread

Hedgers should focus on better bear spreads that offers optimal entry points.

In order to establish the above stated strategy, hedgers should focus on selling a Call option and purchase another Call at a higher Strike Price for a net credit.

A Bear Call Spread is better over short Call since it has limited risk unlike unlimited risk in case of short call.

Use a short time for maturity (something like 15 day to near month contracts bearing positive theta value) to take advantage of the time decay and give the underlying currency less time to go against you.

Buy 7D (1%) Out-Of-The-Money 0.25 delta calls and sell 7D (-1%) In-The-Money calls for net credit receivable. The combined delta should have negative delta somewhere close to -0.55 as we have shorts on ITM calls in our position.

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