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To: pater tenebrarum who wrote (109805)6/22/2001 11:49:13 AM
From: Haim R. Branisteanu  Read Replies (2) of 436258
 
Heinz, the currency option are volatile plenty due to the big amount of underlying currency (125,000 Euro's). I write only out of money 50% covered currency option as a hedge so far so good. Even with the low IV still the time decay in real $$$ is around $50 to $70 a day. The problem is the spread which may eat you 2 to 3 days in price decay.

Was lucky to sell at 10.5% IV in the Euro and not the IV dropped to below 9% that by itself is a decay of around $100 per contract. So will see how it goes. Hope by July 13 the Euro will not be around 0.87 as to write another set of August 0.88 options.

See the chart of the Euro I think cash 0.86/0.865 will signal completion of a bottom. The question is will it trade in an uptrend to parity by year end or sideways.

Haim

Haim
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