The US dollar market is kinda like GameStop stock (bear with me for a second). Both markets rallied off historical lows to start 2021, fell back to those lows in February, and have recently awoken yet again.
So where does that leave USD and GME on the Ides of March? In an awkward position that’s oft brought traders consternation throughout history: a potential buy that’s simultaneously showing signs of life and presenting less value.
Don’t Look Back in Anger
Rarely do traders buy a stock or currency at the absolute lowest price, and so the conversation over whether or not to buy should come down to whether or not you still see upside. There’s little use in bemoaning what could have been, but there could still be opportunity on the table if you think the market will continue higher.
Dollars and Video Games (USD & GME)
Option(al) Help
What can help ease this frustration? Option premium. Calls against GME shares or puts in the US dollar’s competitors against SFX contracts can get that long position’s breakeven closer to those lows you may have missed.
| 6E | 6J | 6B |
|---|---|---|
| -1 1.18 Put | -1 0.0091 Put | -1 1.37 Put |
| +1.175 Put | +1 0.00905 Put | +1 1.36 Put |
There’s no point in wallowing over missed opportunities, especially if you think there’s still potential for growth.
—
To learn more about how the Small Exchange is merging the efficiency of futures with the clarity of stocks, make sure to subscribe to their YouTube channel and follow them on Twitter so you never miss an update.
© 2021 Small Exchange, Inc. All rights reserved. Small Exchange, Inc. is a Designated Contract Market registered with the U.S. Commodity Futures Trading Commission. The information in this advertisement is current as of the date noted, is for informational purposes only, and does not contend to address the financial objectives, situation, or specific needs of any individual investor. Trading futures involves the risk of loss, including the possibility of loss greater than your initial investment.
You must be logged in to post a comment.