TalkFNStocks, Options and FOREX investments

Today I also bought Australian Dollar (AUD) call options. The Australian economy is roaring back to life much faster than any of the other G20 nations. In fact the Reserve Bank of Australia (RBA) as raised interest rates twice in the recent past that has strengthened the AUD significantly. I have had good outcome on my AUD/NZD trade in October and I am hoping that this trade against the US Dollar (USD) will payoff as well.

The AUD call options which are a derivative of XDA (AUD vs. USD) trades in the Philadelphia exchange under the symbol XDALS. These are December 2009 XDA 91 call options. I paid a premium of $207 per contract. I will break-even if the XDA trades at $93.07 at or before expiration.

The AUD has been strong over the last month and with the weakness in the USD, the combination pair is a good option to make a bet on. My expectation on this play is a gain in the premium of between 30-50% within the next 2 weeks.

This entry was posted on Wednesday, November 4th, 2009 at 7:36 pm and is filed under FOREX, Options. You can follow any comments to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.