Forex Options Strangle System | Page 11 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Forex Deconstruction System (A Mr. Mark So inspired system) 13 replies

Any Options, Bull Options & Option Bit 39 replies

Strangle strategy for options 1 reply

Scaling & Straddle/Strangle Combination - Awesome Potential!! 4 replies

Attachments: Forex Options Strangle System
Exit Attachments

Forex Options Strangle System

  • #201
  • Jan 20, 2011 5:03pm Jan 20, 2011 5:03pm
Maybe not offered in Australia. I think the laws there and the South Pacific have been changing.

http://www.pfgbest.com/platforms/BESTDirectFXOptions/
  • #202
  • Jan 20, 2011 6:16pm Jan 20, 2011 6:16pm
HI
It has nothing do do with me being in Australia
The link works , thanks
BUT the chat still says they have stopped offering it!
SO if you are considering this broker .. well they don't offer FX options
Back to Saxo / CitFX or Ikon!


Kyle: I'm sorry. Why are you confused?
you: well I chatted twice and your people said you don;t offer FX options but this weblink shows FX options
you: Hence the confusion
Kyle: Okay I understand. We just to have the Forex Options Platform, but no longer support that.
Kyle: Where did you obtain that link from?
you: here http://www.forexfactory.com/showthre...194796&page=14
you: so do u offer it or not?
you: i just downloaded demo also so what exactly is the status ?
Kyle: No, we currently only offer Forex Option trading through our trade desk. We no longer have a platform that supports those such trades. Sorry.
you: hang on as I said I just opened a demo and your website still has the link!
Kyle: I'm sorry that link is no longer on our main website. That is an old direct link that just hasn't been disabled.
  • #203
  • Jan 20, 2011 6:40pm Jan 20, 2011 6:40pm
Thanks for doing the research on that. The link to it showed up in a basic web search. I guess I'll have to look into Ikon.
  • #204
  • Jan 21, 2011 7:34am Jan 21, 2011 7:34am
hi. anyone of you have tried XTB? i would like to try but i need your opinions if any. thank you.

trade safe
  • #205
  • Jan 21, 2011 10:56am Jan 21, 2011 10:56am
Looks like an interesting platform. Can't tell if it is offered to U.S. customers.
  • #206
  • Jan 21, 2011 12:46pm Jan 21, 2011 12:46pm
Here is another one:-

GCI Trading

http://www.gcitrading.com/options.htm
  • #207
  • Jan 22, 2011 1:14am Jan 22, 2011 1:14am
Quoting cspip
Here is another one:-

GCI Trading

http://www.gcitrading.com/options.htm
Could not make out which country this broker is regulated in?
FSA? ASIC? US?
  • #208
  • Jan 22, 2011 1:21am Jan 22, 2011 1:21am
Quoting suntzu
hi. anyone of you have tried XTB? i would like to try but i need your opinions if any. thank you.

trade safe
Again which country? how secure are funds etc

If one is looking for Saxo style FX Options I think the bets woudl be to stick with
Saxo itself in jurisdictions like Sweden/ Singapore or UK FSA regulated white label
In US : Citifx
Or
IG markets in UK/ USA (nadex)
However IG platform is not user friendly as Saxo's
  • #209
  • Edited 3:43am Jan 22, 2011 3:41am | Edited 3:43am
According to their website they are regulated in many European countries (most of them in Eastern part)but not in UK http://www.xtb.com/?p=847#4 .
That is why i'm in doubt a little bit about them.

trade safe
  • #210
  • Jan 22, 2011 4:05am Jan 22, 2011 4:05am
And another...........This one is in the UK

Finotec

http://www.finotec.com/tour/products.php


http://www.finotec.com/


and regulated by UK's FSA.
  • #211
  • Jan 22, 2011 11:18am Jan 22, 2011 11:18am
GCI and Finotec don't have an option to select United States when opening a live account, so those are out for me.
XTB has some weird setup where you have to send them forms in the regular mail. I imagine they don't serve the U.S. anyway.
Some reviews on Citi:
http://www.forexfactory.com/showthread.php?t=72462
the first page of this thread has a link near the bottom to a great article on why to get into futures. I think I will, once I have the money for the large contract sizes.

I found a few other brokers in Google, but they all have quirks: no selling options allowed, not enough info on demo, live, or the platform...

My demo Ikon trades seem to have worked out. Just need to get more info on Ikon spreads and commission and I'll probably open an account.
  • #212
  • Jan 23, 2011 11:48am Jan 23, 2011 11:48am
Quoting agent6488
GCI and Finotec don't have an option to select United States when opening a live account, so those are out for me.
XTB has some weird setup where you have to send them forms in the regular mail. I imagine they don't serve the U.S. anyway.
Some reviews on Citi:
http://www.forexfactory.com/showthread.php?t=72462...

Could you tell us please which other brokers you found?

Thanks,
  • #213
  • Jan 23, 2011 1:08pm Jan 23, 2011 1:08pm
Honestly none of them really looked legit; I don't really want to look them up again and promote them here. It was just a simple web search that you can do along the lines of FX Options. The results go on for many pages as with most web searches.
  • #214
  • Jan 23, 2011 5:11pm Jan 23, 2011 5:11pm
Quote
I'll try to step through the transactions on a Leg Failure:
1) ENTRY: Sell 100K GBPUSD Call 1.6700 Strike 12.17.09 Expiry when the GBPUSD is at 1.6200. Collect 16 pips.
2) FAILURE: GBPUSD reaches 1.6700 on 12.09.09. The 12.17.09 Call has 8 days left in it.
3) ROLL: There are two transactions in the roll done simultaneously:
.....a) Buy 100K GBPUSD Call 1.6700 Strike 12.17.09 Expiry . Pay 87 Pips, making you down 71 Pips.
.....b) Sell 100K GBPUSD Call 1.7800 Strike 02.17.09 Expiry. Collect 85 Pips, making you net up 14 pips....

Hi scattergood,

I understand that the costs for this example are theoretical, but aren't they very generous? You imply from above that you can collect collecting a premium of 85 pips for a call GBPUSD 1100 pips away in just 3 months (see red line above) seems too generous to me... So are you sure that you can recover the loss in the initial trade if it goes against you?

For example GBPUSD is currently at around 1.6, son 1100 pips is 1.71. A 3 months expiry call option has a 28 pips of premium according to Saxo demo account

Can you please clarify? Your comments are appreciated.
  • #215
  • Jan 24, 2011 1:31am Jan 24, 2011 1:31am
Quoting tigretoncio
Hi scattergood,

I understand that the costs for this example are theoretical, but aren't they very generous?...
As I said in the very next sentence: The roll costs are estimated,...

I was just trying to illustrate what a roll looks like. The disparity in the prices you quote can be dealt with by a) a higher volatility environment, b) a closer strike, and c) a further out expiry.

Again, I was just trying to illustrate what a roll looked like, so in different situations it may not be 1100 pips away, it may be more than 3 months out, or not, depending on many variables.
  • #216
  • Jan 25, 2011 12:57pm Jan 25, 2011 12:57pm
Quoting scattergood
Hi all,

I wanted start a thread to discuss a Forex Options Strangle System (FOSS), as I have been applying a similary system to equity indexes for the last year with good success. I have become a pretty conservative trader over the last few years and focus as much or more on how not to lose and how to reduce drawdown as I have been on maximizing returns. You have to survive in order to fight another day. Thus, on index options, over the last 7 months I am up 16% with no more than a 2% draw down on a monthly basis.

Because of that success, I...
Hello,
My first post here. Options subject is very interesting and often overlooked by traders.
It is rightfuly noted that there may be opportunities but there must be better ones. I know news trading is dead but what about selling strangle before news or immediately after. Did anyone have an experience with this?
  • #217
  • Jan 26, 2011 5:05pm Jan 26, 2011 5:05pm
Quoting scattergood
But the big question is what to do when I am wrong. When the price moves towards one of my strikes? Well, in that case I just eat the loss and buy back the option, and immediately turn around and sell another one, further out of the money, further out in time, and a little smaller, basically just looking to make back my loss. Since if I lose on one side, I keep all the money on the other.

....................

Example trade
============
So here is a live trade I just made:

GBPUSD: 1.6150
Sell 100,000 GBPUSD Call @ 1.6700 9-17 expiry...
Hello Scattergood,

Thanks for the help in this thread. Please could you explain what do you mean if you lose on one side you keep the other side?
And keeping the $160 on $1000 of margin?

"Thus if you are short a Call and Short a Put, you only have to use margin for either the Call or the Put as you can't be wrong on both."
Is it that selling strangles has unlimited loss?

"I SELL option strangles in order to capture theta, or the time decay in the value of the option. Every day that passes the option value decreases a little, just as the option value changes either up or down as the price of the currency changes up or down."
Does that mean you get to keep more of the premium you got for selling, as time passes?

(Sorry the quotes are from your very first post! )

Thanks
  • #218
  • Jan 26, 2011 6:30pm Jan 26, 2011 6:30pm
Quoting cspip
Hello Scattergood,

Thanks for the help in this thread. Please could you explain what do you mean if you lose on one side you keep the other side?
And keeping the $160 on $1000 of margin?

[i]"Thus if you are short a Call and Short a Put, you only have to use...
1) No it means that if you are short a call and short a put, you can only lose on one of them. The price of a currency cannot be both up and down at the same time. Thus the broker only asks for margin on one side at a time. Thus you collect premium on two sides, but provide margin on one.

2) No you only keep the premium you collected, no more. Theta means that some portion of the premium needed to buy the position back goes away each day because there are fewer days left on the option.
  • #219
  • Jan 26, 2011 6:49pm Jan 26, 2011 6:49pm
Quoting scattergood
1) No it means that if you are short a call and short a put, you can only lose on one of them. The price of a currency cannot be both up and down at the same time. Thus the broker only asks for margin on one side at a time. Thus you collect premium on two sides, but provide margin on one.

2) No you only keep the premium you collected, no more. Theta means that some portion of the premium needed to buy the position back goes away each day because there are fewer days left on the option.
Thanks,

For 1) What would be the maximum you could lose on the trade?

For 2) You get to keep the full premium at expiry? And keep less premimum, say you closed the trade after 10 days in to a 30 day trade (assuming it stays between the strikes) ?
  • #220
  • Jan 29, 2011 1:08pm Jan 29, 2011 1:08pm
Hello

Please could someone explain this for me?

On demo account i bought GBPJPY Call with strike price 132.45, (current spot price was also the same) on 27th Jan 2011 for expiry on 11th Feb for $147.

The GBPJPY spot went down and is now about 130.26, and now the demo account is showing profit of $37.75 but still down -$109.25.

My question is, what is the reason for this? My Call was wrong, so why am i getting money back (the $37.75) ?

Thanks!
0 traders viewing now