FxWirePro: NZD/JPY short put ladder following and arresting the trend regardless of short term swings

Currency Option Strategy: NZD/JPY Short Put Ladder
Rationale: unlimited downside and limited upside profit potential

On daily charts, we can observe some slight price recoveries as we stated earlier moving averages signified some price stability which could propel the prices towards north in short term. That was the time when we referred short put ladder strategy as stated below, now ITM shorts are functioning from last 4 days of that recommendation.

While weekly and monthly leading oscillators (RSI and stochastic) are puzzling this uptrend rallies. We think this pair is likely to remain either on sideways or slightly swing upwards in short term but not beyond 81.533 levels in short run. Having said that the continuation of long term downtrend can also not be disregarded, so as a swing trader with a mindset of gaining these swings on both directions we constructed this strategy. Since the short put ladder is an unrestricted return with partial risk bearing strategy that is deployed because in addition to the puzzling uptrend in short term and downtrend in long-term, we think that the NZDJPY would also perceive significant volatility in the near term.

Strategy formulation: Short 7D (1.5%) ITM put option and simultaneously add longs on 15D ATM -0.49 delta put option and one more long position on 1M (-1.5%) OTM -0.34 delta put option.

Maximum returns are limited to the extent of initial credit received if the NZDJPY rallies above the upper breakeven point (BEP) but large unlimited profit can be achieved should the underlying exchange rate of NZDJPY  makes a vivid downswings below the lower BEP.