A strategy I used to use in stocks some years ago was to trade strangles. Let's say I purchased a strangle for $3.00. I would wait for the Put or the Call option to reach $3.00, then I'd sell it and own the other option for free.
This seems like it may be a good strategy for trading options in Forex.
Has anyone tried anything like this? I have yet to trade an option in Forex and I'm not sure what the differences are compared to trading options in stocks. For example, in the stock market, you can only trade options when the market is open, and it seems Forex options are exactly the same way. Yet Forex doesn't close, it just gets more volatile depending on the time of day and such. Does this make it difficult to get in and out of Forex Options?
Thanks for any input.
This seems like it may be a good strategy for trading options in Forex.
Has anyone tried anything like this? I have yet to trade an option in Forex and I'm not sure what the differences are compared to trading options in stocks. For example, in the stock market, you can only trade options when the market is open, and it seems Forex options are exactly the same way. Yet Forex doesn't close, it just gets more volatile depending on the time of day and such. Does this make it difficult to get in and out of Forex Options?
Thanks for any input.