Forex Options?

I'm doing an impromptu straw poll here: I'm curious to know how many traders in this forum have traded forex options as part of his/her portfolio. Anyone?

Is that you John???

Options are still in the plan for me in the future. I just have 'too many irons in the fire' right now if you know what I mean. I do plan on using Phillip's Market Rhythm 4 Hour Strategy as a guide for the options. For instance, using the daily/weekly timeframes with the same indicators/rules. Since trading on the daily/weekly requires larger stops, this is where the options would come into play. Here's a daily chart with the same setup as the 4hr chart. The blue rectangles would be used for long calls entries or even long straddles in the event things turn the other way. I'm not sure if FX options can be traded electronically or if they are open outcry but it seems like straddling before an economic news release might be doable as well as long as the options are not traded open outcry....

I'm extremely interested in trading with options. Most of my experience is in the equity market. I've demo tested various option strategies in the currency market thru Saxobank and the futures market thru Optionsxpress (although I would use IB for live - except that they have yet to provide NYMEX options [crude oil, natural gas, etc.]). I believe most of the floor traders and even retail traders best tool for success is in the options market. For example, Nassim Taleb made a fortune trading OTC currency options; although VN lost a fortune doing options (however he was in a crisis/desperate situation).

I would love to explore various option spread strategies in the currency market; however, because I never could engender or locate much discussion on option strategies, I had to go to another forum for such information.

Ultimately, because of the (60/40) tax benefits, the strong leverage and the stability/protection of an exchange, I have focused most of my energy within the last few months on the futures option market (this includes indices, currencies, 10-yr treasury note, energy, grain & soft commodities).

Most of my effort is on trying to craft the "perfect spread" option. This is one that minimizes risk (including the black swan) to worst case single digit % loss while simultaneously yield a double digit return per month, with the odds of success being at least 70% - 75%. Perhaps I'm in search of a mythical scenario & would be better served trying to find the Tooth Fairy or a Flying Unicorn, but I learn of folks who have become very wealthy in this endeavor. All I can do is continue to test various combinations of spreads in hopes of obtaining this goal. I'm not a fan of dispersion techniques; however, I am fond of combining ratio spread with backspreads across calendar months. I've also found some promise in combing an Iron Condor with a Debit spread. Strangles with the various spreads also seem promisisng (i.e. call ratio spread & put ratio spread, with the intent of rolling the losing leg if/when it doubles in value or perhaps creating a synthetic covered position against the losing leg when the market price equals the strike price). I understand that fundamentally it's best to be long on the wings, as the skews are most favorable for such positions. Consequently, I most hopeful about combining a Debit spread with a backspread.

Walt

I would love to learn more.

As you see, not much interest in options in this forum. I think many traders are truly missing a golden opportunity. Perhaps if Merlin were to share how successful he has been with option strategies, then that may spark some interest...

Walt

I don't know if there is no interest, or like me, a lack of knowledge of trading options in Forex. I am familar with Options on Futures only.