Saturday, February 23, 2008

Currency options

Using currency ETF's one can take advantage of the falling dollar. The dollar has been falling against the euro and the pound for the last few years. This will probably change over the next little while. The Canadian and Australian currency should become stronger than the dollar as natural resources continue to rise with inflationary pressures.

Ways to play this. Go long the aussie ETF (FXA). While most know me as the calendar trader, these are times for the diagonal plays.

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