Options hedge for profit
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Thread: Options hedge for profit

  1. #1
    Buy a call and put at exactly the same time on GBPUSD. Wait to make profit and shut the Dollar. Repeat. Is it that simple? I have seen a statement from a very successful set of FX options traders who do exactly this. Over and over again. Several times a month these traders input GBPUSD options hedges. I feel some hedges are calendar hedges but some appear to be plain hedges. Going short and long . It appears the volatility in GBPUSD will outstrip the premiums paid to enter the hedge. These people which are running this hedge fund are noted as Risk Manager of the Year with a widespread commodities magazine.
    Jeff Swanson

  2. #2
    I'm getting the statements again to be sure but I believe their spreads are 50 pips on the options. I understand where they trade as well and it is one of the biggest primes in the united states.

  3. #3
    axnwS.Nixxir
    Guest
    Hwere would be the

    This seems like interesting egy.

  4. #4
    resiSsaSor10
    Guest
    Quote Originally Posted by ;
    hwere are the statemetns????

    This seems like intriguing egy.
    No stetements then?

  5. #5
    soTtuC
    Guest
    Buuuut, just how long premium are you currently buying the options with? If the markets begin ranging subsequently the value declines. . .Unless these are buying the opts about news events with little time value left in the first place...

  6. #6
    Hi,

    Adding my two cents. I have just learned about fx choices a couple months ago but the egy being discussed here functions for earings reports on equities provided they proceed enough. I am seeking to try it at fx (demo 1st of course) and see what happens.

    Mike.

  7. #7
    Quote Originally Posted by ;
    Buy a call and put in the same time on GBPUSD. Wait to create profit and close the hedge. Repeat. Is it that simple?
    This can be called a straddle, or a strangle in the event the call and put have different strikes. Is it that simple? Of course not, nothing that makes money is each easy there is some thing called theta, and its your worst enemy if buying a straddle. In simple terms, theta will let you lose money daily if the price stays still. There's cash to be made in options (thats where I have found a lot of my trading profits) but as I said, its never easy.

  8. #8
    oSonesCiNu
    Guest
    Quote Originally Posted by ;
    this is called a straddle, or even a strangle if the call and put have various strikes. Is it that simple? Of course notnothing that makes money is every easy there is something called theta, and its own worst enemy when buying a straddle. Basically, theta will let you lose money daily when the price stays still. There is cash to be made in choices (thats where I have found most of my trading profits) however as I said, its never simple.
    Hi Merlin,

    Where do you typically trade your fx choices? I am considering Saxobank; nonetheless, I am concerned about these as a dealer. Maybe an ECN that trades through ISE or even PHLX exchanges are greatest; howeverthey don't allow for cross currency fx choices.

    Your thoughts...

    Thank you,

    Walt

  9. #9
    Alternatives on forex? I have never heard of the. Where can we exchange options on forex? And does anyone know of a system to find out to achieve this?

  10. #10
    j.T
    Guest
    Quote Originally Posted by ;
    Options on forex? I have never heard of this. Where can we exchange options on forex? And does anyone know of a system to find out to achieve this?
    I exchange them with ThinkorSwim. You are able to enroll a demo account (paper cash ).
    And this is site about ISE FX options: http://www.ise.com/WebForm/options_p...truelink1=true

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