Is the US Dollar Just Getting Started?
Frank Kaberna \ Chief Content Strategist
The US dollar market is kinda like GameStop stock (bear with me for a second). Both markets rallied off historical lows to start 2021, fell back to those lows in February, and have recently awoken yet again.
So where does that leave USD and GME on the Ides of March? In an awkward position that’s oft brought traders consternation throughout history: a potential buy that’s simultaneously showing signs of life and presenting less value.
Don’t Look Back in Anger
Rarely do traders buy a stock or currency at the absolute lowest price, and so the conversation over whether or not to buy should come down to whether or not you still see upside. There’s little use in bemoaning what could have been, but there could still be opportunity on the table if you think the market will continue higher.
What can help ease this frustration? Option premium. Calls against GME shares or puts in the US dollar’s competitors against SFX contracts can get that long position’s breakeven closer to those lows you may have missed.
There’s no point in wallowing over missed opportunities, especially if you think there’s still potential for growth.
Dollars and Video Games (USD & GME)
Source: dxFeed Index Services