Live on Bloomberg TV

00:00THIS IS > > WE HAVE QUITE THE TRADING MAESTRO WITH US, TOM THORTON OF HAD FRONT -- HEDGE FUND TELEMETRY. LAST TIME, JOINED US IN AUGUST WHEN THE POUND WAS CLOSER TO 120. TAKE A LOOK AT THE QUARTER TO DATE NOW, PRETTY INCREDIBLE. THIS GOES BACK BEFORE THE QUARTER, WITH THE BOOZE COMING THIS QUARTER UP 6.5%, NOW ON PACE FOR ITS BEST QUARTERLY GAINS GOING BACK TO 2009 AHEAD OF THE GENERAL ELECTION THURSDAY. LET'S PUT THIS IN THE CONTEXT OF A LONG-TERM CHART BACK TO 1971, WE SEE HIGHS ABOVE 250 AND THEN DOWN CLOSER TO 105 IN 1985. A HUGE RANGE OF UNCERTAINTY AND WHIPSAW'S FOR THE POUND AGAINST THE DOLLAR. THE LAST HIGH ABOVE TWO AND THEN HERE ARE THOSE LOWS, BACK DURING THE TRUE BREXIT AND THIS PAST SUMMER CLOSER TO 120 EVEN A LITTLE BIT BELOW. RIGHT NOW THE CHART SUGGESTS WE WILL SEE THE POUND OVER THE LONG-TERM GO BACK TOWARD 140, 150, MAYBE 160. THE TIMING IS EVERYTHING AND TO TALK MORE ABOUT THAT TIMING AND WHETHER YOU AGREE WITH THAT, TOM THORTON OF HEDGE FUND TELEMETRY THANK YOU FOR BEING HERE DO THINK THE POUND COULD MAKE ITS WAY BACK UP? > > WE HAVE A LOT OF WORK TO GET BACK THROUGH THEIR. IT IS POSSIBLE BUT YOU HAVE SHORT-TERM STALLING OUT PATTERN HAPPENING NOW. ABIGAIL: SO LET'S PUT THAT WITH UP CHART YOU PRESENTED IN AUGUST . YOU SAID TO BUY THAT IT 127 AND WE ARE WELL PAST THAT. > > YES WE DID OK HERE. THE RSI WAS UNDER 30 AND THE MAC D WAS OVERSOLD. NOW WE ARE GETTING TO WHERE IT IS OVERBOUGHT. 127 WAS OUR INITIAL LEVEL AND NOW IT HAS HAD THIS 6% MOVE WHICH I THINK IS PRICING IN BORIS JOHNSON'S WIN WITH THE CONSERVATIVES AND I THINK A LITTLE OVERDONE. ABIGAIL: TALK TO US ABOUT TRADING MR. OPTIONS -- TRADING THROUGH OPTIONS IF YOU'RE NOT GOING TO MAKE A CLEAR DIRECTIONAL THAT. > > WHAT I LIKE IS TO SELL A STRANGLE. WE ARE GOING TO SELL THE 130 PUT. AND THEN SELL THE 134 CALL. YOU COLLECT DOLLAR 50 IN PREMIUMS. THE RISK LEVELS ARE 138 AND 13550 OUT. I WOULD LIKE TO SELL THE POUND AT 135 POINT FIVE AND BY AT 128. THOSE ARE GOOD LEVELS GOING FORWARD IF WE HAVE PULLBACK AFTER THE MODE. > > IT SHOULD BE INTERESTING TO SEE WHAT COMES AFTER THURSDAY AND THIS IS A GOOD WAY TO GATHER POTTSVILLE IS ON ALL SIDES. -- TOGETHER ON ALL SIDES.

No schedule data available.

Pound Rise Overdone, Hedge Fund Telemetry's Thornton Says

In this edition of "Charting Futures," Hedge Fund Telemetry President Tom Thornton his options trade for pound futures with Bloomberg's Abigail Doolittle on "Bloomberg Markets: The Close." (Source: Bloomberg)

Bloomberg Markets
"Bloomberg Markets" is focused on bringing you the most important global business and breaking markets news and information as it happens.
More episodes and clips