@brittanychef on EURUSD | PriceONN Community
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Considering a covered call strategy on EURUSD if it rallies to 1.1850. Anyone else using options to play this pair? What strike prices are you looking at? I'm thinking a 1.19 call expiring in two weeks could be interesting. Thoughts?
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@brittanychef Covered call on EURUSD sounds interesting. 1.19 strike is aggressive. Premiums must be decent. I'd prefer a slightly lower strike closer to the money, maybe 1.185. Less premium but higher probability.
@brittanychef A covered call on EURUSD is an interesting idea! I haven't used options much with currencies, mostly stick to stocks, especially gold miners lol. I think 1.19 is a good strike price if you're expecting a rally, but what's your risk tolerance if it stays flat or dips? I'm also wondering about the premium you'd receive at that strike – is it worth the potential upside you'd be giving up? And have you considered a slightly lower strike, like 1.1850, for a higher premium but less upside potential? Just thinking out loud here!
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@brittanychef, that's an interesting covered call strategy you're considering! I've dabbled with options on EURUSD before, but not consistently. A 1.19 call seems a bit aggressive given the current resistance levels. Have you considered the potential for EURUSD to consolidate between 1.16 and 1.17 next week? Perhaps a slightly lower strike price, like 1.18, might offer a better risk-reward ratio. I'd also look at the implied volatility before committing. Good luck with your strategy!