Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Airline Loyalty Programs Face New Uncertainty as Visa–Mastercard Fee Settlement Evolves 
Bitcoin Defies Gravity Above $93K Despite Missing Retail FOMO – ETF Inflows Return & Whales Accumulate: Buy the Dip to $100K 
Ethereum Ignites: Fusaka Upgrade Unleashes 9× Scalability as ETH Holds Strong Above $3,100 – Bull Run Reloaded 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
Bitcoin Smashes $93K as Institutions Pile In – $100K Next? 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
We could foresee a bullish scenario of USDCAD above 1.43 driven by:
1) The US moves ahead on border adjustments or NAFTA negotiations turn sour;
2) US-Canada trade negotiations turn acute and negative with a proliferation of high-profile trade enforcement actions by the US;
3) Commodity prices fall much further on China/global growth concerns;
4) Wobbles in the housing market cause a broader instability in the financial system.
OTC Outlook and Options Strategy:
Please be noted that the above nutshell showing IVs and risk reversals of this pair, has been neutral. Implied volatilities have been extremely lower (least among the G7 FX space) and you could also make out that there have been no hedging sentiments (neutral risk reversals in 1w tenors and with bullish neutral hedging sentiments in 1m-1y tenors).
Contemplating these OTC indications, using this option strategy, the investor gets to earn a premium on writing overpriced calls while at the same time appreciate all benefits of underlying spot outrights moderately.
If he’s having FX payables unless he is assigned an exercise notice on the written call and is obligated to sell his spot outright holdings, this strategy is a risky venture.
This is a suitable strategy where the moderately bullish investor sells out of the money calls against a holding of the underlying spot outrights. The OTM covered call is a popular strategy as the investor gets to collect premium while being able to enjoy capital gains (albeit limited) if the underlying spot FX rallies.
