FX & Energy
The Canadian dollar has been trading steadily higher for the past four months as prices have yet to fall below their upward-sloping trendline, identified by the white line in the chart. What if metal and energy prices back off in the immediate future, will the loonie's strong ties to the commodity markets cause prices to depreciate? I believe so, and I have a trade idea to capitalize on it.
Buy CDZ12 $1 puts for $550 - $600 per before commissions and fees. The trade has 53 days until expiration and I'm looking for a trade back to par in coming weeks. With energies and metals backing off, and after an 8% appreciation in the past four months, the idea is that prices could head south. A 50% Fibonacci retracement on the December contract puts prices back at .9925. On this move, these options should be worth in the ballpark of $900 - $1,000 per....137 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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