The Forex Options Course A Self-Study Guide

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.

Abe Cofnas has been the forex trading columnist for Futures magazine since 2001. He also formed Learn4x.com—one of the first Web-based interactivetraining sites devoted to forex trading—in 2001, and currently manages aglobal forex trading team and call room at www.fxdimensions.com. He is founder of www.currencygames.com, a global forex currency game company that combines challenges and training. Cofnas is head forex coach at www.secretsofforextraders.com and the author of The Forex Trading Course (Wiley).

Preface	p. ix
Acknowledgments	p. xi
About the Author	p. xiii
Key Option Elements	p. 1
The Elements of an Option Trade	p. 3
Plain Vanilla Options	p. 3
Purchasing an Option	p. 3
Writing an Option-Beginners Don't	p. 8
Elements of an Option Trade or Ticket	p. 10
The Greeks	p. 15
Summary	p. 23
What Affects Forex Option Prices?	p. 25
Time	p. 25
Volatility	p. 27
Summary	p. 50
Forex Market Drivers	p. 51
Finding Direction for Your Forex Option Trade	p. 53
The Importance of Interest Rate Expectations	p. 53
How to Anticipate the Direction of the Federal Open Market Committee (FOMC)	p. 54
How to Use Housing Sector Data for Developing Forex Option Trade Direction	p. 62
Evaluating Real Estate Exchange-Traded Funds (ETFs)	p. 71
Summary	p. 77
Tracking Fundamental Directions	p. 79
Using Currency Targeted Exchange-Traded Funds (ETFs) to Determine If the Market Is Dollar Bearish or Bullish	p. 79
Diagnosing Global Economic Conditions	p. 83
Group Currencies by Purchasing Power Parity (PPP) (Big Mac Index)	p. 84
Tracking the Currency-Commodity Connection	p. 94
The Currency Outlook Checklist	p. 97
Summary	p. 98
Timing the Trade with Technical Analysis	p. 99
Chart Patterns and Trade Entry	p. 101
Chart Patterns and How to Use Them	p. 101
Scanning for Volatility	p. 110
Summary	p. 114
Using Experts to Shape Trading Decisions	p. 115
Forecasting Accuracy?	p. 116
Professional Sources of Expert Forex Opinion	p. 117
Follow the Housing Prices	p. 122
Follow the Think Tanks	p. 124
Follow the Bank Forecasts	p. 125
Summary	p. 128
Forex Options Strategies	p. 129
Vanilla, Spreads, and Volatility Strategies	p. 131
Plain Vanilla Strategies	p. 131
Currency Pair Spreads: Playing the Correlations and Divergencies	p. 133
Commodity-Currency Spread Strategies	p. 139
Carry Trade Option Strategies	p. 144
Trading Delta Call/Put Ratios	p. 147
Trading Vega or Volatility	p. 150
Gamma Spread Trading	p. 154
Key Forex Option Combinations and Components	p. 156
Summary	p. 163
Binary Option Strategies	p. 165
What Is a Binary Option?	p. 166
Using Exotics to Derive Market Sentiment	p. 170
Combining Binary Options with Plain Vanilla and Spot Trading	p. 173
Summary	p. 177
Option Strategies for Extreme Outcomes and Scenarios	p. 179
Recession in China or Continued Boom	p. 179
Option Trading to Play Carry Trades with Hedge-Putting on Collars	p. 181
$ 1000 + Gold and $200 + Crude Oil	p. 182
Trading $Oil Shock ($200) in Forex Options	p. 183
Play a U.S. Stagflation and Inflation	p. 184
Preemptive Attack on Iran	p. 184
Recovery of Housing	p. 185
Summary	p. 185
Conclusion: Putting It All Together	p. 187
Achieving Optimal Forex Option Trading Fitness	p. 187
Forward Testing Your Forex Option Trading Fitness	p. 188
Where to Trade Forex Options	p. 189
Selected Futures Columns	p. 191
Index	p. 213
Table of Contents provided by Ingram. All Rights Reserved.

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

Summary

Author Biography

Table of Contents

Supplemental Materials