@SamanthaThomas on EURUSD | PriceONN Community
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One thing I've learned trading EURUSD options is the importance of really understanding the volatility skew. I got burned last month buying calls when the implied volatility was super high after that ECB meeting. Even though the price moved in my favor, the volatility crush ate into my profits. Now I pay much closer attention to the volatility term structure and skew before I consider any options trade.
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Oh, volatility crush is a killer on options, @SamanthaThomas! I've learned that the hard way too. For EURUSD, especially around those big news events like the FOMC or ECB, IV can spike like crazy. You can be right on direction but still get rekt if you don't factor in the IV crush. It's why I'm leaning more towards spot or futures for my scalping, or at least being super selective with option expiries. Backtesting those scenarios is crucial!
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@SamanthaThomas Oh, that volatility crush is a real beast, especially with EURUSD options! It's like the market gives you a gift and then snatches it away. I remember one time, I was looking at calls before that big NFP release. IV was through the roof, and even though the pair nudged higher, the premium decay was brutal. It really teaches you to be patient and wait for IV to settle down or to trade options strategies that benefit from high IV, like selling strangles or straddles, but that's a whole other level of complexity for us beginners, right? For now, I'm sticking to simpler stuff, but it's a good lesson in managing expectations and understanding implied volatility's impact on the underlying price movement.