06
Mar
13

Currency Options USDINR: March series

February series for USDINR option expired on 26th February. My sold 52 puts expired worthless (https://writingoptions.wordpress.com/2013/02/08/currency-options-usdinr-february-series/). I had rolled over sold puts to March series. In march series apart from 52 puts, I have also sold 52.5 puts. In last week there has been risk off in global markets. Risk off is best reflected by the Euro level of 1.3 and Dollar Index above 82 levels (Dollar Index level is skewed by the sharp depreciation of JPY).

I was selling USDINR puts aggressively after Union budget on 28th February. IV’s were high and there was expectation that FM might announce big bang growth measures. INR rallied till 53.6 levels and sold immediately to 54.9 level by the end of budget day. I expect INR to remain weak on account of high current account deficit with periods of volatility. In case INR appreciates to levels of 52-53, it should provide opportunity to sell some more puts (But I am worried about this trade because Mr. Sudarshan Sukhani (CNBC TV18) is also bearish on INR and expects it to touch 57 level 🙂 ).

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