The British Pound (/6B) has seen an 11% decline since January of 2018. What's more, the volatility level in this product is also relatively depleted. That said, the volatility term structure in /6B picks up right around the time the next Brexit vote is set to occur.
With this in mind, Pete explains how to trade this discrepancy in volatility with a strangle calendar spread. Tune in as he walks through how to buy the cheap volatility contract and sell the expensive volatility contract. Plus, get his outlook on management for this setup!