I've been reading up on options and there are a ton of ways to hedge exposures, however most of them limit profit potential and your time frame would shift at at least 3-6 months.
I'm very curious to see if anyone on this thread has experience writing and managing these fx options. My hope is that as the terrain for fx changes I'll have other options (lol) than spot fx to cover me. In addition I am interested in understanding fti's bank MO.
From what I gather, I think banks write options and collect their premium. They would then manage that risk with a hedge. The credits from the sale may be used for the spot fx dept thus playing with foreign capital the whole time?
Indianguy, can you speak more on how you identified the bull on the crosses? Up till now my decision for direction has been purely flow, and while it helps a lot, it can lead you into traps traps traps.
I'm very curious to see if anyone on this thread has experience writing and managing these fx options. My hope is that as the terrain for fx changes I'll have other options (lol) than spot fx to cover me. In addition I am interested in understanding fti's bank MO.
From what I gather, I think banks write options and collect their premium. They would then manage that risk with a hedge. The credits from the sale may be used for the spot fx dept thus playing with foreign capital the whole time?
Indianguy, can you speak more on how you identified the bull on the crosses? Up till now my decision for direction has been purely flow, and while it helps a lot, it can lead you into traps traps traps.