EURUSD | Page 47641 | Forex Factory

Options

Go to
Permalinks
Print Thread

Related Instruments

EUR/USD, GBP/USD, USD/CHF

Similar Threads

MT4: how to change "EURUSD" to "#EURUSD"? 3 replies

Re: EurUsd short term 15 replies

did oanda just drop its spread for eurusd to 1 pip? 11 replies

EA for multiple lot limit order for EURUSD 0 replies

NFP nice bump up on EURUSD 2 replies

Attachments: EURUSD
Exit Attachments

EURUSD

  • #952,801
  • Jan 22, 2015 3:21am Jan 22, 2015 3:21am
Quoting sisse
{quote} lol mate.... " hey, can anyone tell me whether big banks are sellers or buyers of options?" The odds of an expert asking a question like this is 0 to none.... Plus I sincerely doubt the majority of readers here will have a huge expertise in options trading which to be honest is a lot more complex topic for any trader experienced or not. I was trying to avoid misleading people asking or replying questions that are completely out of line for trading and posting a link to a proper source of education... so if you are an expert in options, well...
you do not need to be an option expert to know that a seller of options, be it a put or a call, is the writer of options.

You do not need to be an option expert to know that one can use options to play hedging, be it a writer or not.
ignore wackos and psychos, including myself. But I can't add myself to iggy
  • #952,802
  • Jan 22, 2015 3:23am Jan 22, 2015 3:23am
Quoting ffleo
hey, can anyone tell me whether big banks are sellers or buyers of options?
mostly sellers, because it is more rewarding and they have influence on implied volatility.

Keep in mind, that most options are worthless at the end of the expiery.
  • #952,803
  • Jan 22, 2015 3:24am Jan 22, 2015 3:24am
EURUSD tried to rally during yesterday session but found enough selling pressure on the 10-day moving at 1.1680 to turn things back down to the open price. The pair closed near the open of the day creating an inverted hammer pattern. Stochastic is showing a slight bullish momentum and volume is falling as investors wait for the ECB monetary policy statement.
Be prepared for the worst but hope for the best!
Want to learn more: HTO Trading
  • #952,804
  • Jan 22, 2015 3:26am Jan 22, 2015 3:26am
1.17272 next....look at Daily & H4
  • #952,805
  • Jan 22, 2015 3:26am Jan 22, 2015 3:26am
Quoting infinitus
{quote} mostly sellers, because it is more rewarding and they have influence on implied volatility. Keep in mind, that most options are worthless at the end of the expiery.
I asked that question because someone forgot whether most banks are sellers or buyers of options.
ignore wackos and psychos, including myself. But I can't add myself to iggy
  • #952,806
  • Jan 22, 2015 3:31am Jan 22, 2015 3:31am
Anyone buying UCAD from yesterdays rate cut lift?
  • #952,807
  • Jan 22, 2015 3:34am Jan 22, 2015 3:34am
Options, yes, fascinating subject, & I won't even try to make any sweeping generalizations. I'll mention a few things, though: yes, anyone can trade options & you don't have to be rich to do it. I have accounts running where I mostly trade options that were started with $2,500 or so. And if you like trading EUR/USD, there are good ways to do that with options: you can trade options on the etf FXE, for instance, or you can trade options on the euro futures contract, /6E.

Below is a trade I might have taken today, it's a double calendar spread on /6e where I sell front month (Feb) options (both puts and calls) on 6E at $1.12 and $1.20 and simultaneously buy back month (Mar) puts & calls at the same strikes. This spread gives me an opportunity to make profit over a 1,300 pip range on the underlying, which is EUR/USD. It should be held til near expiration day, 2/6. Options are exchange traded, you can see all trades that are made on all the exchanges and the specifics of all of those trades, in real time. The screen shot shows the top of the list of /6E options trades for today.

If you want to learn more about options trading, drop by the Let's Trade Options thread and ask a question or two or just watch trades go down, there are a few of us active over there.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2015-01-21_6e4.png Size: 61 KB
Click to Enlarge Name: 2015-01-22_6e5.png Size: 81 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #952,808
  • Jan 22, 2015 3:36am Jan 22, 2015 3:36am
So we will see spike up and down soon. Will be an interesting night with big movement I guess.
  • #952,809
  • Jan 22, 2015 3:40am Jan 22, 2015 3:40am
Quoting The Fool
Options, yes, fascinating subject, & I won't even try to make any sweeping generalizations. I'll mention a few things, though: yes, anyone can trade options & you don't have to be rich to do it. I have accounts running where I mostly trade options that were started with $2,500 or so. And if you like trading EUR/USD, there are good ways to do that with options: you can trade options on the etf FXE, for instance, or you can trade options on the euro futures contract, /6E. Below is a trade I might have taken today, it's a double calendar spread on...
Hey nice to here from you.
How about sell options to collect premium and take an opposite trade on the underlying to hedge the options?
ignore wackos and psychos, including myself. But I can't add myself to iggy
  • #952,810
  • Jan 22, 2015 3:41am Jan 22, 2015 3:41am
Quoting The Fool
Options, yes, fascinating subject, & I won't even try to make any sweeping generalizations. I'll mention a few things, though: yes, anyone can trade options & you don't have to be rich to do it. I have accounts running where I mostly trade options that were started with $2,500 or so. And if you like trading EUR/USD, there are good ways to do that with options: you can trade options on the etf FXE, for instance, or you can trade options on the euro futures contract, /6E. Below is a trade I might have taken today, it's a double calendar spread on...

Brilliant mate as usual.

Thanks for sharing a real option case.Your posts always tempt me to look for an alternative trade via options..... I think it will trigger a lot questions from serious traders that want to add options in their arsenal.

Good luck with that double calendar spread.

sisse
Pending conversations? PM for a chat...I am mainly in OTM now
  • #952,811
  • Jan 22, 2015 3:49am Jan 22, 2015 3:49am
Quoting ffleo
{quote} Hey nice to here from you. How about sell options to collect premium and take an opposite trade on the underlying to hedge the options?
Definitely, in fact, it's arguably easiest to make money in options being a seller, but you also have to be very well heeled to trade that way, selling naked requires lots of margin. Which is why I typically trade spreads...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #952,812
  • Jan 22, 2015 3:51am Jan 22, 2015 3:51am
Quoting infinitus
{quote} mostly sellers, because it is more rewarding and they have influence on implied volatility. Keep in mind, that most options are worthless at the end of the expiery.
but.... the counterpart of a client buying a call option suffers potentially an infinite loss....
We live in a finite world with infinite possibilities.
FxTyrant M-Series (Live - Darwinex) All Time Return: 0.7%
  • #952,813
  • Jan 22, 2015 3:51am Jan 22, 2015 3:51am
Quoting sisse
{quote} Brilliant mate as usual. Thanks for sharing a real option case.Your posts always tempt me to look for an alternative trade via options..... I think it will trigger a lot questions from serious traders that want to add options in their arsenal. Good luck with that double calendar spread. sisse
Thanks, sisse . I didn't take that trade, I am content to sit on hands while the fireworks go off, for the most part. Best of luck to you...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #952,814
  • Jan 22, 2015 3:52am Jan 22, 2015 3:52am
Quoting The Fool
Options, yes, fascinating subject, & I won't even try to make any sweeping generalizations. I'll mention a few things, though: yes, anyone can trade options & you don't have to be rich to do it. I have accounts running where I mostly trade options that were started with $2,500 or so. And if you like trading EUR/USD, there are good ways to do that with options: you can trade options on the etf FXE, for instance, or you can trade options on the euro futures contract, /6E. Below is a trade I might have taken today, it's a double calendar spread on...
nice to see someone using bjerksund pricing model....
black-scholes has been a little dodgy at times....
We live in a finite world with infinite possibilities.
FxTyrant M-Series (Live - Darwinex) All Time Return: 0.7%
  • #952,815
  • Jan 22, 2015 3:59am Jan 22, 2015 3:59am
Hi Mercy,
do you have old charts since 1950 ????
Can you post one - if you have one.
Just a idea @ 88.2% if is 1.8xxx right - could be a good one!

The guy didn't post since 8thJan. He either died or got Swissed. Anyway that one could be a good idea Schickeria
  • #952,816
  • Jan 22, 2015 4:02am Jan 22, 2015 4:02am
Bought UCAD 2333 TP 25, hope i dont have to carry that trough ECB.
  • #952,817
  • Jan 22, 2015 4:03am Jan 22, 2015 4:03am
in case of 1.1635 break I see 1.168
  • #952,818
  • Jan 22, 2015 4:04am Jan 22, 2015 4:04am
Quoting gigicualex
Hi Mercy, do you have old charts since 1950 ???? Can you post one - if you have one. Just a idea @ 88.2% if is 1.8xxx right - could be a good one! The guy didn't post since 8thJan. He either died or got Swissed. Anyway that one could be a good idea S.
lmao good one...
i wonder if swissed was in the dictionary, what the accurate definition would be....
We live in a finite world with infinite possibilities.
FxTyrant M-Series (Live - Darwinex) All Time Return: 0.7%
  • #952,819
  • Jan 22, 2015 4:04am Jan 22, 2015 4:04am
greece is not going to take a place in the programme and that seems to be final based on the information the government has and has leaked to the press... they even have leaked the wording thats going to be a sidelines stating that only countries that have met their respective targets will take a place on the programme (so it gives some hope for greece joining the programme sometime later on.... before you say anything about it dont forget we have elections on sunday)
  • #952,820
  • Jan 22, 2015 4:09am Jan 22, 2015 4:09am
Quoting gigicualex
Hi Mercy, do you have old charts since 1950 ???? Can you post one - if you have one. Just a idea @ 88.2% if is 1.8xxx right - could be a good one! The guy didn't post since 8thJan. He either died or got Swissed. Anyway that one could be a good idea Schickeria
Quoting mercy seat
Hello dear fellow traders! I want to wish to you all and your family a happy new year 2015 and if possible stay successful and above all stay healthy for the year 2015! Many thanks for your kind words via E-Mails and Private Messages... I will not trade until next Tuesday, Jan. 13, 2015 or maybe even not until The End of this Month. Ich bin bis zum Donnerstag, den 29. Januar 2015, unterwegs auf Reisen und werde bestenfalls nur ein paar Sachen zum Thema hier hereinstellen... Bis denne. Auf Wiedersehen! ;-|
He probably will be back at the end of month.
2,923 traders viewing now