The Forex Options Course: A Self-Study Guide to Trading Currency Options

by Abe Cofnas

• ISBN13: 9780470407233
• ISBN10: 0470407239
• Format: eBook
• Copyright: 2009-04-01
• Publisher: Wiley
• More Book Details
• Purchase Benefits

Summary

The Forex Options Course is a practical, hands-on guide to understanding and trading forex options. Designed to build a trader's knowledge base in a step-by-step manner, this reliable resource moves from the straightforward to the more sophisticated with discussions of everything from basic plain vanilla calls and puts to intriguing first-generation exotic binary options. Written in a straightforward and accessible style, The Forex Options Course will help you develop the skills and strategies needed to succeed in today's dynamic forex market.

Table of Contents

Foreword

Preface

Acknowledgments

About the Author

Key Option Elements.

The Elements of an Option Trade

Plain Vanilla Options

Purchasing an Option

Writing an OptionùBeginners Don't

Elements of an Option Trade or Ticket

The Greeks

Summary

What Affects Forex Option Prices?

Time

Volatility

Summary

Forex Market Drivers.

Finding Direction for Your Forex Option Trade

The Importance of Interest Rate Expectations

How to Anticipate the Direction of the FOMC

How to Use Housing Sector Data for Developing Forex Option Trade Direction

Evaluating Real Estate ETFs

Summary

Tracking Fundamental Directions

Using Currency Targeted ETFs to Determine If the Market Is Dollar Bearish or Bullish

Diagnosing Global Economic Conditions

Group Currencies by Purchasing Power Parity (PPP) (Big Mac Index)

Tracking the Currency-Commodity Connection

The Currency Outlook Checklist

Summary

Timing the Trade with Technical Analysis.

Chart Patterns and Trade Entry

Chart Patterns and How to Use Them

Scanning for Volatility

Summary

Using Experts to Shape Trading Decisions

Forecasting Accuracy

Professional Sources of Expert FX Opinion

Follow the Housing Prices

Follow the Think Tanks

Follow the Bank Forecasts

Summary

Forex Options Strategies.

Vanilla, Spreads, and Volatility Strategies

Plain Vanilla Strategies

Currency Pair Spreads: Playing the Correlations

Commodity Currency Spread Strategies

Carry Trade Option Strategies

Trading Delta Call/Put Ratios

Trading Vega or Volatility

Gamma Spread Trading

Key FX Option Combinations and Components

Summary

Binary Option Strategies

What Is a Binary Option?

Using Exotics to Derive Market Sentiment

Combining Binary Options with Plain Vanilla and Spot Trading

Summary

Option Strategies for Extreme Outcomes and Scenarios

Recession in China or Continued Boom

Option Trading to Play Carry Trades with Hedge û Putting on Collars

$1000+ Gold and $200+ GOLD

Trading $Oil Shock ($200) in FX Options

Play a US Stagflation and Inflation

Preemptive Attack on Iran

Recovery of Housing

Summary

In Conclusion: Putting It All Together

Achieving Optimal Forex Option Trading Fitness

Forward Testing Your Forex Option Trading Fitness

Where to Trade Forex Options

Appendix

Selected Futures Columns

Index

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