GBP/USD currency derivatives condors strategy for 1.5343-1.5421 range

Trading perspectives:

From last fortnight or so we've been advocating bearish strategies, well..! We hope regular traders whose portfolios derived profits from such bear trend of pound can book their returns on proportionate basis. We now advise to hold some portions on long side to participate in sideways or slight conservative rallies.

We could foresee some more marginal upswings on daily charts of GBPUSD in intermediate trend as a clear converging signal from RSI (14) and stochastic curves, one can speculate with the help of binary calls. Although there is no trace of drastic or dramatic movements on either side we still sense some sort of bearish view when we plot weekly or monthly charts.

Hence, on hedging perspectives, with an anticipation of volatility being dipped after crucial events such as Greece debt crisis and with a week to begin we could still sense upward momentum on pounds against dollar.

Here come a multiple legs of option strategy of this currency cross. A total of 4 legs are involved in the condor construction and a net debit is required to establish the strategy.

The trader can construct a long condor option spread as follows,

Buying 7D deep (-1.5%) In-The-Money 0.9 delta Call + Selling 7D (-1%) In-The-Money Call + 7D Selling (1%) Out-Of The-Money Call + Buying another 15D even deeper (1.5%) Out-Of-The-Money 0.09 delta Call.

Thus, ideally for those who expect a slight dips from current levels but not beyond 1.5343 this strategy is advisable.