CHF/NOK

F

farmerjohn1324

What do you think of a trade like this?

CHF/NOK has skyrocketed lately since early March. What about sell it and hold until the corona stuff has passed?

You can extend the relatively flat line before the increase all the way back to 2015 or further.
 

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Any reason why the exact currency pair CHF/NOK is being used for this trade thesis? Other than it "skyrocketed". Currencies are not stocks, so I'd like a little more info as to why this pair and how the "corona stuff" passing has any impact on this specific currency pair. For example: I could advise you to short Zoom Video (ZM) in the near future cause it has had an extensive run up due to the corona-virus and social distancing. When the "corona stuff" passes, Zoom Video will probably experience a large reduction in users spending time on the platform. Some may even cancel their accounts all-together as remote conferencing is not a common essential in most people's lives. No doubt the company has thrived with the new "at-home" culture, but like all things, the virus will pass, and I suspect at that time Zoom Video (ZM) will return to a lower valuation. - I have no reviewed ZM balance sheets before/after corona-virus but they would be worth a look, and would probably yield more evidence to the downside.
 
Walshdil said:
Any reason why the exact currency pair CHF/NOK is being used for this trade thesis? Other than it "skyrocketed". Currencies are not stocks, so I'd like a little more info as to why this pair and how the "corona stuff" passing has any impact on this specific currency pair. For example: I could advise you to short Zoom Video (ZM) in the near future cause it has had an extensive run up due to the corona-virus and social distancing. When the "corona stuff" passes, Zoom Video will probably experience a large reduction in users spending time on the platform. Some may even cancel their accounts all-together as remote conferencing is not a common essential in most people's lives. No doubt the company has thrived with the new "at-home" culture, but like all things, the virus will pass, and I suspect at that time Zoom Video (ZM) will return to a lower valuation. - I have no reviewed ZM balance sheets before/after corona-virus but they would be worth a look, and would probably yield more evidence to the downside.
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CHF = safe haven
NOK = correlated to price of oil

Both of these should reverse when economy gets more normal
 
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