Well.., a little price revival from last couple of days would not mean that previous downtrend has ended. Instead, they are to be regarded as resurgence rallies and could be utilized by deploying short term put writings that is likely to derive certain returns on every rally.
The prime purpose of employing shorts of (1.5%) in the money puts are serving, (see daily charts), this was recommended on 16th of this month and these lesser tenor shorts would have expired worthless and no longer be in the money.
Refer our previous post: http://www.econotimes.com/FxWirePro-Capitalize-on-NZD-JPY-rallies-to-deploy-shorts-in-put-ladder-for-hedging-103917
We see now is the time for those active long positions in ATM and OTM puts.
Here are the ways in which one can build and develop put ladders regardless of swings. That In-The-Money puts on short side in strategy were always at risk of exercise, but you have nothing worry about this now as they've expired worthless.
Keeping maximum tenor on long side and time decay advantage:
The pair is likely to perceive implied volatility close to 14.56% which is inching lower from 17%, holding 2 lots of ATM and OTM put with longer expiry since implied volatility is inching lower which is good for option holders.
We've seen in the last post, using shorter tenor contracts on short side has helped us options expiring worthless and lock in profits, conversely, in the same way let us keep maturity a bit lengthier on longs.
Giving a longer time to expiration for long sides so as to make a substantial move on the downside so that assignment can be covered by the long puts like opposite to the time decay and implied volatility work in your favor on the short sides.


FxWirePro: NZD/USD gains slightly but bearish outlook remains
FxWirePro:GBP/USD recovers some ground but bears are not done yet
EUR/USD Relief Rally Crashes Into 200/365 EMA Wall: Sell-on-Rise Near 1.1600 Targets 1.1435
NZD/JPY Bear Trap: Triple EMA Ceiling Blocks Relief Rally, Sellers Eye 90.50
Sterling's Shine Fades: GBPJPY Sell-on-Rally Setup Targets 210.40 Breakdown
EURJPY Bearish Dent Intact: Sell the Relief Rally Toward 183/182 Support
FxWirePro: AUD/USD holds narrow range, focus on near-term support
FxWirePro- Woodies pivot (Major)
Sterling Surge: GBP/JPY Smashes Above 214 With Triple EMA Blessing; Bulls Eye 217
FxWirePro: USD/CAD bulls continue to hold the higher ground
FxWirePro: EUR/ NZD consolidating around 1.9855, room for further gains
FxWirePro- Woodies pivot (Major)
USD/CHF Retreats to Key Trend-Line Wall; Buy-Above-0.8000 Strategy Targets Sharp Rally to 0.8150
FxWirePro: USD/JPY holds firm despite concerns over possible currency intervention
AUDJPY Cracks Below 113: Bearish Breakdown Accelerates Toward 110.50 Target
FxWirePro: EUR/ NZD bulls gain momentum,eyes level 2.0000




