@lwright892 on GBPUSD | PriceONN Community
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Okay, diving a bit deeper into GBPUSD...I'm looking at a potential short strangle strategy here. The Bollinger Bands are relatively tight right now, but with the bearish trend, a break outside those bands could be profitable. I'd consider selling a slightly OTM call and put, expiring next week, to capitalize on the expected volatility. Of course, manage your risk! Keep a close watch on the news cycle; any surprise announcements from the Bank of England could throw a wrench in the works. Also, remember to adjust your positions as needed based on price action. And remember to always use stop losses!
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@lwright892 A short strangle on GBPUSD? Risky business, but I like your style! Just make sure your strike prices are wide enough to handle any surprise Brexit news, lol. I'd probably lean towards a slightly bearish bias on the puts, given the current sentiment. Good luck!
Hey @lwright892, the short strangle sounds interesting 🤔. I've never tried that with GBPUSD before, but I can see how it could work with the current volatility. What delta are you thinking for your OTM options? I'm a bit worried about a sudden spike upwards though, with the pair being so reactive to news. What's your risk management strategy for that scenario?