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Is the US Dollar Just Getting Started?

by Frank Kaberna| Tips & Strategies

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)

Source: dxFeed Index Services (https://indexit.dxfeed.com)

Gain exposure to popular markets with standardized tick values and expiration dates on the Small Exchange. See why the smalls are making a big splash. >>

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.

Long SFX Future + Short April Options
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.

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© 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.

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About Frank Kaberna

Frank Kaberna is the head content strategist at the Small Exchange. He produces everything from brochures to videos that inform on the Small Exchange’s products. After earning a mathematics degree from the University of Michigan, Frank traded interest rates at the Chicago Board of Trade. He then worked on the tastytrade Network as a content producer and on-air talent before landing at the Small Exchange.

Risk Disclosure

The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.

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