Options are excellent vehicles for taking a directional view on a market. But buying outright puts or calls are subject to time decay. A straightforward options strategy is the vertical spread. Here’s a profit loss graph of a vertical spread using calls.
The bull move in the U.S. dollar has dominated discussion in the currency world. Recently, the strong dollar even has begun to generate foreign exchange losses among multi-nationals as their earnings abroad get discounted by converting into U.S. dollars at report times. Furthermore, expectations of a lift-off in interest rates makes the bull seem unstoppable.