The March Euro is down 12 ticks in quiet trading at 1.4338 this morning as I write.  The included chart shows that the March Euro is still well entrenched in an intermediate term down trend  The directional movement indicators are bearish, but the ADX line is beginning to flatten out.  This may be an early warning sign that the down trend in the Euro may be running out of steam.  Since much of the potential gain in the covered put write Euro trade has already been realized, let’s go ahead and take profits on that trade.  I recommend liquidating the short March Euro futures contract and buying back to liquidate the short March Euro 1.5100 strike put option at around 820 ticks, the current price.  Hold on to the rest of our trades.

 Followers should be long one March Euro (1.3850 strike) put from 121 ticks and short 2 March Euro (1.3400 strike) put options from 67 ticks each for an overall credit of 13 ticks or $162.50 gross.

You should also be long one March Euro (1.5750 strike) call option at 134 ticks and short 2 March Euro (1.6100 strike) calls at 75 ticks each for an overall credit of 16 ticks or $200 gross.

You should also be short one March Euro futures contract form 1.4769, and short one March Euro (1.5100 strike) put at 535 ticks, or $6687.50. (Being liquidated today!!)

 March Euro options expire in 65 days.

 David Hall

 The information and opinions contained herein comes from sources believed to be reliable, but are not guaranteed as to accuracy or completeness. The risk of loss in trading futures and/or options can be substantial. Each investor must consider whether this is a suitable investment. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results.

 This newsletter is not intended for dissemination to the public without prior approval from David Hall.