Spreading with options/new releases

Does anyone have a strategy they use for spreading with options only and/or
trading one side with an option and the other side with spot forex? Are there
graphs available that show prob. of profit for currency options similiar to
equity options? A rep. from RefcoFX told me that currency options are the
best way to trade news releases - any comment on that?

i have many options strategies, but they are far to complicated to explain here unless you know options jargon. basically i buy butterflys and condors.

there are graphs that show the probabilities etc. i use tradestation, which has an awesome options analysis tool. you can do so much with options on their platform it would amaze you.

as for playing the news releases...the reason the refco rep said that is because options plays are usually a play on volatility. not so much the direciton of the trade. therefore, if you know there will be volatility with something like an NFP announcement, you could buy a straddle or a strangle, or maybe sell a butterfly or condor. those are all types of options spreads if you are not familiar with the terms.

basically, my advice to you is not to trade options unless you are prepared to learn A LOT. options are 100x more complicated than trading the underlying.

here is what tradestation's analysis of options looks like...

My advise is when a broker rep. tells you something to do ... run away ! they are paid to take your money not to help you make some.

For the theory I share 100% merlin view on Options

Merlin: looks to me like you are referring to equity options, not FX options. Even your graph is for an equity option. The only types of FX options I have seen advertised are the ones that break or touch a specified level, so I do not know how condors, butterflies can be utilized with FX options. The Refco FX web-site recommends a double one touch for trading news releases. If the price touches either the upper or lower amount before expiration you will receive the amount you specify. Seems to me like this is an excellent method to trade news releases vs. trading both sides with a regular FX account, since with a regular FX account, there is more chance of getting shaken out of your position. Merlin, have you or anyone in this forum traded these types of options? If so, any
trading strategies, incl. using options as a hedge, is appreciated.

i trade equity and futures currency options, they are the same stuff. as for forex options, it depends on where you are getting them. my advise is to never trade OTC options. its like playing at a casino where the odds are already fixed against you (ie oanda options). options should only be traded on a transparent exchange, because that is where you have a fair shot of winning. any exchange will let you trade butterflys etc. because they are just synthetic positions created with simple puts and calls.