Currency Futures Options

plus loss from the premium for the bought put...

but better than stop loss slippage..

( the idea of buying call is a good one also )...
but i am doing totaly something else here
 
I never bought a call...when did i say i bought a call ?

i bought a put to protect my long position..

correct me if i am wrong.

thats why i am here..
 
Quote from cloned777777:

plus loss from the premium for the bought put...

but better than stop loss slippage..

( the idea of buying call is a good one also )...
but i am doing totaly something else here
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You don't understand. You are long a synthetic call. I'm not telling you to buy a call, I'm tell you that is what your position is. You are long a call that is now worthless. There is nothing to hedge!
 
Quote from cloned777777:

I never bought a call...when did i say i bought a call ?

i bought a put to protect my long position..

correct me if i am wrong.

thats why i am here..
More...

Long Put + Long Underlying = Long Call
 
Quote from cloned777777:

plus loss from the premium for the bought put...

but better than stop loss slippage..

( the idea of buying call is a good one also )...
but i am doing totaly something else here
More...

the confusion that i have is that you said that you're already long and profitable at 1.2200. then you wish to protect it by buying a put at 1.2200 but you're concerned that the options available are European and cannot be exercised at any time except at expiration. no problem.

put = short the underlying + call

what you really want is to have a risk free way of cashing out your profit but still make more money if there's more upside to go.

so, you want to short the underlying and buy a call (put) or in this case, sell your position and buy a call.

maybe i got this wrong, as i'm mostly a directional player, so someone can correct me...

Peace.
 
Quote from palawan:

the confusion that i have is that you said that you're already long and profitable at 1.2200. then you wish to protect it by buying a put at 1.2200 but you're concerned that the options available are European and cannot be exercised at any time except at expiration. no problem.

put = short the underlying + call

what you really want is to have a risk free way of cashing out your profit but still make more money if there's more upside to go.

so, you want to short the underlying and buy a call (put) or in this case, sell your position and buy a call.

maybe i got this wrong, as i'm mostly a directional player, so someone can correct me...

Peace.
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No palawan, the problem is he does not have a profit at all. He has a worthless position. He can sell the put if he wants but now all he has done is taken a long underlying position. He now has substantial downside risk. He hasn't hedged anything. What he needs to do first is learn his synthetics. Then he should come back and trade.
 
Quote from Maverick74:

No palawan, the problem is he does not have a profit at all. He has a worthless position. He can sell the put if he wants but now all he has done is taken a long underlying position. He now has substantial downside risk. He hasn't hedged anything. What he needs to do first is learn his synthetics. Then he should come back and trade.
More...

Ok, cool. i thought he said he was already long (and i assumed profitable position) but that he didn't believe in stop-loss order. i guess there's the flip-side where he's long (and negative on the position) but wanted to protect from a "crash" by using a put.

i still say close the position (at a loss) and buy a call :) simpler strategy of being protected from a "crash" in the underlying but still able to profit on the upside

but that's just my directional bias talking there.... :D

Peace.
 
I agree.

its just that i have a long position that has not made profit yet...
just got into the position.

but then i have to hedge.

You are right, might as well go long on a call.

does the same thing.

I knew it, but i need to apply that to my stretgy that i have not mentioned as yet.

going long / buy put or buy call..

they are fighting in my head for my strategy
 
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