12/08/2015: AUDUSD Option trade closed 6 weeks early

I’ve talked in the past about how I’ve often used Binary Options to build longer term hands-off positions over the Summer months.  Here’s a fine example of a position that I had in all honesty pretty much forgotten about until I looked at the position yesterday.

Earlier in the summer (11th June to be exact) I had seen that AUDUSD was still very weak and unlikely to reverse its trend any time over the summer months. Looking at the bigger picture weekly chart I identified a level that I was confident wouldn’t be breached and took a No-Touch barrier position at 0.82. The contract was due to run until 25th September (wanted to close out before end of Quarter flows.) The profit potential was 40%

I quite literally forgot about the position until earlier this week when checking in with markets and positions. The AUDUSD has continued to fall since Jun and my position was almost 93% of its way to target. With at least 6-7 weeks to run it was an easy decision to close my positions early. Waiting 6-7 weeks for 6-8% more profit was pointless.

So the position was closed early for a nice profit. I only do that when the position is so close to target that its foolish to keep the position on. As the old trader saying goes “Don’t be a dick for a tick!”

If you want to learn more about how you could add these very simple tools and tactics to your trading arsenal then you should join the VTP Stage 2 course in September.

Until next time, trade well.

Paul