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Currency options trading – SKA options

This is a more complex currency options trading strategy which involves the Swedisk Krona and the US dollar, and as for our recent currency options trading tip, is based on our analysis of further US dollar weakness, which we believe is imminent, as the quantitative programme in the US finally gets into full swing. Despite the rally by the US dollar over the last few days, the technical picture for the currency remains weak as evidenced on the dollar index chart. As such we expect to see the index move towards 75.60 in due course, and thereafter down towards the 72 region for a retest of support here.

Our forecast for the SKA ( USD/SEK) currency options contract is for a move lower towards the 65 area or even as far as 62.50 in due course. In order to take advantage of this move, we suggest the following trade set up which is to buy three put contracts, namely the December 10 at 66.5, the December 10  at 66, and the January 11 at 66.50.