The Week Ahead
Volume 93 - Q2 begins...
Overall, last week was a solid week. There were some index losses, but single stocks, commodities, and FX trades all performed well.
Yesterday, rules are rules, sell the 0DTE SPX straddle with a UK bank holiday. Sold for 24.5, settled for 6.23.
On the 19th of March, we sold EUR/CAD at 1.4765 with a 1.44 target and a 1.50 stop. This morning we have cut 3/4 at 1.4573 for just shy of 200 pips. The final quarter is left open with stops at breakeven and the target the same. There wasn’t a long, deep thesis behind it… “Can’t see the BoC turning dovish anytime soon, with strength in oil (and growth), should benefit Canadian trade, like buying CAD by selling EUR/CAD…” GBP/USD short continues to work well.
Back on the 14th of March, we rolled some 03/15 80c to 04/17 83c when they were trading at 1.72. I think this was actually the second time we rolled the options out; this morning, these are trading at 3.11. If I recall correctly, the prior calls were the 02/14 72c… paid around 1.6 for those.
Top single stock weights (DIS, META, GOOGL) continue to perform well, making some kind of decision on DIS in the coming weeks as I originally said I’d bring down to a ~5% weight at 125. Unfortunately, overnight, another long (HUM) has sold off -9%, and I am having to think about cutting it.
Going back to FX, I remain long EUR/GBP, but the trade has been a slow burner—green but slow. I am considering cutting the trade for a small gain and implementing a 1x2 or a 1x1.5, though with so many elections coming up this year; I need to give this some thought with FX vol where it is.
Fresh idea to come…