Unconventional FX Plays

Our alternative strategies exploit: 1) Volatility risk premiums through option structures, 2) Correlation breakdowns between typically linked assets, 3) Central bank policy asymmetries (put/call analysis), 4) Forward point term structure arbitrage, and 5) Geopolitical mispricings. These go beyond traditional directional trading to capture market inefficiencies.

Our volatility strategies include: 1) Gamma scalping during event windows, 2) Volatility risk premium capture through ratio spreads, 3) Straddle/strangle selling in range-bound regimes, and 4) Variance swaps on FX volatility indexes. These generate consistent returns regardless of market direction when properly hedged.

We exploit: 1) Safe-haven decoupling (JPY vs CHF divergence), 2) Commodity-currency dislocations (AUD/CAD vs underlying resources), 3) EM contagion mispricings, and 4) Policy divergence asymmetries (ECB-Fed expectations gap). These create mean-reversion opportunities with 5:1 risk-reward profiles.

We capitalize on: 1) Term structure anomalies in NDF markets, 2) Cross-currency basis mismatches, 3) CIP (covered interest parity) deviations, and 4) Forward point convergence trades around central bank meetings. These require sophisticated funding cost analysis but offer near-risk-free returns when executed precisely.

We analyze: 1) Implied central bank puts (e.g., Fed protection in EM), 2) Policy reaction function options, 3) Currency intervention strike prices, and 4) Forward guidance optionality. These create opportunities in volatility surfaces and exotic option structures unavailable to retail traders.

We exploit: 1) Sanction-driven currency substitution, 2) Capital control arbitrage, 3) Sovereign CDS-FX basis trades, and 4) Dual-listed asset mispricings. These require specialized legal/political analysis but offer uncorrelated returns during crises.