Aussie $ short trade with risk management

Hi Folks, today I am back with a recap of the idea or setup we discussed yesterday. Yesterday, if you recall, we were looking at the Australian dollar, the six a futures and we were looking at a short setup right here into this area around 7175 7180 pretty much broke down the thought process behind that flipping to an hourly so still got the weekly over here, hourly over here. And at the time of the video, we were coming into the close and I was looking at a short opportunity in the Ozzy as we’re pushing up into these weekly and daily levels of structure. We also had the 618 retracement as well and favorable seasonality bias that favored a move to the downside. So I told you on the video that I was going to be looking to short when we broke below this hourly bar here around 7175. And that is exactly what I did. I shorted the market put in my stop up here at 7240 right here. And I went to bed and we talked about the selling, put a cover put option somewhere below either 7175 7152 Allow me to get called away or effect put the market there if we were below 7175 at tomorrow’s expiration. So the chain, so when I so when I initiated this trade after market, there really was no market in those options. So I just put the stop here at 7240 and left the target open and went to bed. And after I went to bed you can see we traded down to about 61. So is up about 1415 ticks 140 $150 per contract. By the time I got up, I saw that we’d pushed here, pushed up here at 7205 ish or so. And right at 730. We were having this we had CPI report coming come out CPI numbers. So right before we had this report, obviously this report could have gone either way and actually did and went down and went up. I sold a I sold next week’s 71 Half put options. So I sold so short from 7175. And I sold next week’s 71 Half put options for 16 ticks are $160 a contract. So then what happened next CPI, slung the market down to about 7150 is up about 25 ticks or so are $250 a contract. Obviously my 71 Half puts were going against me but that’s okay because I was short, but I decided once I saw that this area whole this area reject here at 7150 and push back higher, I decided to close out my 71 Half puts. So I bought those back at 30. Taking a loss of about 14 ticks or $140 a contract. And then what then what I did is I moved my staff from 70 to 40. I was up on the trade I moved my stop down to about 7161 locking in there about 14 ticks. So you can see overall, that is a pretty much a scratch trade here, I lost about $145 on that put option. And I made about $130 Their futures contract after commissions. And you see it was a wise to close that trade out. As we sit right up to about 7249 would have stopped me out. And now we’re back lower. So that’s that’s the way the market works some time but at least wanted to follow up and show you how I play the Aussie dollar and how options can be an effective tool to help manage your risk. So maybe talking about these types of setups, these types of moves and how you can take advantage of them regardless of the market you trade. On Friday, February 11 at 11am Eastern, I’m going to hyperlink you to this page so you can register registration is free. Bring your symbols bring your tickers. Bring your questions and I look forward to seeing you there