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  1. #1
    Administrator Martin Kay's Avatar

    Hot New Tips by Richard – EUR/CHF, EXC Weekly Expiry 9/02-09/2013 !!!

    Hi guys,

    The new Richard's Weekly Binary Options Trading Tips are ready for you!
    Check them out and spot the best trading opportunities presented in depth by our PRO trader Richard!

    Originaly presented by Richard Cox.

    In the week ahead, we have several large event risks that will put an end to the reduced volatility seen in the summer. After the Monday holiday, we will have interest rate decisions from five different central banks, several GDP releases, and Non Farm Payrolls on Friday. Traders should be prepared for increased volatility given the large number of event risks we will see in coming sessions. Markets are expecting an NFP increase of 180,000 jobs, and any number higher than this will indicate the Fed should begin tapering. Overall, expect an exciting week of price activity once markets return to full strength after the Monday trading holiday.

    1. Last week’s trade in the USD/CHF performed nicely, indicating that further weakness in the CHF is in store. At this stage, the EUR/CHF provides a cheaper value and it trading at key support levels that should hold into next week. The pair is also less vulnerable to erratic price moves after next week’s Non Farm Payrolls number. This week, look to buy weekly CALL options in EUR/CHF at the week’s open on Monday, which should come in near the 1.2280 area.

    2. For stock trades, I will be looking to capitalize on recent analyst downgrades and disappointing earnings results from Utility company Exelon Corp. (EXC). Growth in the company’s earnings per share has been seen at nearly -20% for the last three quarters and with the expected sluggishness in stocks I expect to see this month, I will be looking to sell at current levels. The company’s price to earnings ratio is another troublesome factor, given the improved valuations that are seen in many of EXC’s competitors. Buy monthly PUT options in EXC at the weekly open, which should come in near 30.80.


  2. #2
    Specialist Member RCox's Avatar
    The trading call in the EUR/CHF moved in a positive direction right from the start. We did see some downside moves in the final parts of the trading week, which is to be expected given the fact that we are holding a trade through the Non Farm Payrolls release. The Euro is particularly vulnerable to weakening risk trends and pickups in market uncertainty and we certainly had that this week. Not only from the central bank side (where five different central bank meetings took place) but from a data side as the markets are still dealing with the GDP figures out of the eurozone and the sustainability of the region's ability to emerge from its first major recession. It should be remembered that the eurozone was thought by many to dissolve before the end of this year, so it is not entirely surprising to see adverse moves when trying to play things from the contrarian perspective. This complicates things for trades in the currency but the wide majority of the euro related positions posted here have closed in the black and this latest trade was a good example of that. Longer term, my bias on this pair remains positive but I would like to see slightly cheaper valuations before getting long again for binary options trades.

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  3. #3
    Specialist Member RCox's Avatar
    Price moves in EXC are trading sideways so far, with a modest downside bias. This agrees with the trade and is encouraging going forward. Prices are currently seen about 50 cents below the strike price which is not bad considering that this is a monthly trade and the attempted moves to the upside have been subdued with little-to-no follow through. Stocks on the whole are likely to have a large amount of difficulty now and for the medium term, which is something I have written about extensively. From a fundamental perspective EXC's earnings per share remain important and there is little on the balance sheet that suggests we are likely to see any real changing moves in the near term. For now, I am not a big fan of stock markets and picking bottoms is a dangerous business for those trading with short term time frames. It is important to remember here that this advice is meant for active traders and not "buy and hold investors." This is a completely different and much more complicated scenario, so it is important to look at each development as it occurs. So far, this trade is positioned well, as there is essentially nothing to suggest that this stock rallies before the strike price completes.
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