Closing Short EUR JPY Via A Put Spread

Crédit Agricole CIB has closed its short EUR/JPY trade, executed via a 6M put spread, after the position expired out of the money with a 2% loss. The strategy failed due to JPY weakness driven by a negative terms of trade shock following the US-Iran war.

Key Takeaways

• 1.The short EUR/JPY trade entered on December 8th via a 6M put spread has been closed.
• 2.The option structure expired out of the money, resulting in a portfolio loss of -2.0%.

Table of Contents

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