We recommend going short EUR-GBP at current levels and selling a 2 month 0.835/0.9 EUR-GBP strangle. We believe this strategy benefits from a good risk reward profile in terms of valuations, technical indicators and event risk. If exercised on the lower strike this acts as a take profit on the underlying cash position, whereas if exercised on the upper strike the client is effectively doubling up at what is a cheap level to buy GBP.
Commerzbank Corporates & Markets
Foreign Exchange