ISE Canadian Dollar FX (.CDD) $106.77 +1.40%
Forex options trading nearly triple their normal pace today as the dollar and the broad market climb and oil drops below $116. Generally calls are out-trading puts 2:1 and the activity is focused in options that pay off if the dollar continues to strengthen. For ISE-listed products this means primarily call buying in the Euro and the Canadian dollar products. CDD saw an aggressive buyer of deep calls early on, paying $14.44 for 600 March 93 Calls on the ISE. CDD index spot level at 106.75 today is up 1.45 from yesterday, illustrating the increased buying power of the dollar and this buyer appears to be positioning for today’s move to continue.
Category: All Indexes
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About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.
