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  1. #1
    Administrator Martin Kay's Avatar

    Hot New Tips by Richard –EUR/CHF, CHK Weekly and Monthly Expiry 8/05-12/2013 !!!

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    The new Richard's Weekly Binary Options Trading Tips ready for you!
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    Originaly presented by Richard Cox.

    On the central bank side of things, no changes in interest rates were made at this latest Federal Reserve meeting (as expected by the market consensus). Because of this “no change” decision, all of the investor focus was placed on the accompanying policy statement, which was clearly interpreted as dovish. Specifically, the Fed said that quantitative easing stimulus programs will continue at their current levels “until the outlook for the labor market has improved substantially.” Prior to this, investors had started positioning themselves for the possibility that the Fed would begin its tapering strategy to exit these programs, but these latest statements drastically reduce this as a realistic possibility. On the whole, this is a positve for stock markets and a negative for the US Dollar (against all the majors, except perhaps the Japanese Yen).

    1. The Swiss Franc saw some erratic price moves into the end of last week, first breaking good short term resistance and then meeting selling pressure in the final sessions. In all but one case, taking the bull side on the EUR/CHF has been positive for these positions, and I will use this latest end of week dip as another opportunity for CALLS. This week, look to buy weekly CALL options in EUR/CHF at the week’s open on Monday, which should come in near the 1.2330 area.

    2. For stock trades, I will be looking to capitalize on the consistently high prices in energy markets, with oil still trading firmly above the 106 level. This has translated to better than expected earnings at oil companies, the latest example of which is Chesapeake Energy Corp. (CHK). CHK’s second quarter net income came in at $457 million ($0.66 per share). Total revenues increased to $4.68 billion (after posting $3.39 billion during the same period last year), this was much better than the consensus expectation of $3.21 billion. Buy one month CALL options in CHK on any drops into support at $24.80.

  2. #2
    Specialist Member RCox's Avatar
    Some negative moves seen in the early parts of the week in the EUR/CHF. At the moment we are only about 10-15 points below the strike price, so there is still clear scope for another run higher and a positive close. Volatility in this pair has been contracting, which is usually an indication that a bigger impulsive move will be in the works. From a very short term perspective, the main area to watch is seen at 1.2325. An upside break here should trip some short term stop losses in bearish positions and send prices higher. Longer term, we could easily see prices in the EUR/CHF above even the 1.25 area before the end of the year, so the majority of the momentum that is expected is still bullish. Failures at 1.2325 put the trade at risk into the later parts of the week. Traders not yet in this position can still enter but it is a better idea to see a break of 1.2325 first as this is the first major obstacle.

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  3. #3
    Specialist Member LesterK's Avatar
    I think EUR/CHF is ranging on a daily time frame with some possibility to move up. I am quite sure that this option will end in the money.

  4. #4
    Specialist Member RCox's Avatar
    Quote Originally Posted by LesterK View Post
    I think EUR/CHF is ranging on a daily time frame with some possibility to move up. I am quite sure that this option will end in the money.
    I am still absolutely positive on this pair but I think the main risk for this week is the fact that liquidity is drying up and volatility is slowing to a near halt. Right now, we are only about 15 points below the strike price but it is looking more and more possible that we will just hold in even tighter ranges into the Friday close. That would obviously not be good for the trade. At the moment, the main technical level is still seen at 1.2325, a break above here should give us a nice little pop into positive territory for the trade, but that looks less likely to me at this stage.

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  5. #5
    Specialist Member RCox's Avatar
    The trade in CHK has shown a nice little bounce after triggering in the upper 24s. Price activity, however, is showing a lot of the same characteristics that we are seeing in trading markets as a whole, as there is little to be seen in the way of big trending moves. The trading environment at the moment should be described as "lackluster" as it seems big sections of the markets have closed positions and are content standing on the sidelines given the traditional price behavior seen in the summer months and the fact that the dust is still settling after last week's FOMC meeting and Non Farm Payrolls report. The bounce back into the 25s is encouraging for the trade and I am still expecting further gains given the improved revenue climate that is being seen in the energy companies.

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