Oct 262009
With the current “lack of clarity” around the global economic situation, the British Pound looks well setup for a short strangle. I’ll be looking at selling some WOOM (way-out-of-the-money) puts and calls over the next week on the March contract/expiration. The GBP has been range-bound since June, and may very well continue chopping around for some time longer. The exit strategy would be to buy back the short options if they double (conservative) or triple (aggressive).