Ex forex

US Final GDP is a key ex forex and is published each quarter. GDP reports measure production and growth of the economy, and are considered by analysts as one the most important indicators of economic activity. A reading which is higher than the market forecast is bullish for the dollar.

Published on Friday at 12:30 GMT. Final GDP is the final of three GDP versions. Q4, well above the estimate of 0. Final GDP for Q4 also stands at 1.

The ECB remains dovish, but recent statements by Fed policymakers have been hawkish, calling for a rate hike as early as April. Technical levels, from top to bottom: 1. USD is likely to rise within range, with a small chance of breaking higher. An unexpected higher reading can push the pair below one support line.

A strong reading would likely boost the dollar, and the pair could break below a second support line as a result. A poor reading could result in the pair breaking above a second resistance line. Google Stock Price Too Expensive for You? US Q4 GDP revised up to 1.

In the world of buying and selling stock options, choices are made in regards to which strategy is best when considering a trade. If an investor is bullish, she can buy a call or sell a put, whereas if she is bearish, she can buy a put or sell a call. Intrinsic Value, Extrinsic Value and Theta Selling options is a positive theta trade. Positive theta means the time value in stocks will melt in your favor. An option is made up of intrinsic and extrinsic value. The intrinsic value relies on the stock’s movement and acts almost like home equity. During an option transaction, the buyer expects the stock to move in one direction and hopes to profit from it.

However, this person pays both intrinsic and extrinsic value and must make up the extrinsic value to profit. Because theta is negative, the option buyer can lose money if the stock stays still or, perhaps even more frustratingly, if the stock moves slowly in the correct direction but the move is offset by time decay. Volatility Risks and Rewards Obviously having the stock price stay in the same area or having it move in your favor will be an important part of your success as an option seller, but paying attention to implied volatility changes is also vital to your success. Implied volatility, also known as vega, moves up and down depending on the supply and demand for option contracts. An option seller may be short on a contract and then experience a rise in demand for contracts, which, in turn, inflates the price of the premium and may cause a loss, even if the stock hasn’t moved. Figure 1 is an example of an implied volatility graph and shows how vega can inflate and deflate at various times. At the same time, time decay will work in favor of the seller too.

It’s important to remember the closer the strike price is to the stock price, the more sensitive the option will be to changes in implied volatility. Therefore, the further out of the money or the deeper in the money a contract is, the less sensitive it will be to implied volatility changes. Probability of Success Option buyers use a contract’s delta to determine how much the option contract will increase in value if the underlying stock moves in favor of the contract. However, option sellers use delta to determine the probability of success. 0 means an option will likely move dollar-per-dollar with the underlying stock, whereas a delta of . 50 means the option will move 50 cents on the dollar with the underlying stock. At some point, option sellers have to determine how important a probability of success is compared to how much premium they are going to get from selling the option.