The market was very quiet today with most traders eagerly waiting for the inflation data to come out tomorrow. The interesting question is whether we can actually trust the numbers. The Fed may choose to just manipulate the numbers to keep the market calm and avoid a major crash.
So what's my trade for today?
#FXB (#BritishPoundETF). The pound is at ridiculously low levels compared to the dollar so I placed a bet on a bounce back till March 2023. I sold the $90 put and bought the $106/107 call vertical. The premium from the put was more than what the call vertical cost so as long as the price remains above $89.70, this trade will generate a bit of profit. If we see a bounce back above $107 (currently at $106.69) then this trade will generate a fairly healthy return with low risk.