Three reasons to consider currency options instead of forex

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“It might be tempting for commentators at this stage to digress into describing the torturous history of the disputed Chinese or Japanese sovereignty over these uninhabited rocks, to provide context for how the two great nations of Asia have virtually drawn daggers over barren island territories in a distant corner of the Pacific Ocean. Yet, the deeply unwise and provocative new Chinese decree of unspecified military measures in the event of unauthorised entry into this airspace has served to dramatically broaden the regional context of this bilateral stand-off.”

                                                                                                 Kurt Campbell, FT

Commentary & Analysis

Three reasons to consider currency options instead of forex

We recently began a currency options service after a hiatus due to market and other circumstances.  We like currency options for these reasons:

  1. Easy.  If you trade options as we suggest, which isn’t really trading options per se, it is very easy.  We use them only as one way bets, or pure directional bet on a particular currency.  We only recommend buying either a put or a call.  That is it.  No spreads, straddles, butterflies, condors, or other assorted sophisticated fair that comes along with options.  We are not options experts to say the least.  So we keep it simple.  We tell you when to buy [a put or call] and when to sell. 
  2. It allows you to buy and hold and know your risk.  If done the way we do it, you know exactly what your maximum risk is—the cost of your options premium (plus commissions).  In spot forex, you must be disciplined and be sure to place a stop because your risk can be very high in that market, as most people trade with higher than normal amounts of leverage. 
  3. High profitability because of leverage.  Options by nature are leveraged vehicles.  So, if you get it right you make much more than you would make by simply holding the underlying.  And because there isn’t a great deal of movement in the listed ETF currency products, options allow you to leverage up those returns if right. 

"The proof of the pudding is in the eating!"  And since we began our options service, Currency Options Strategist, we’ve done well for our subscribers; our closed position track record to date is below:

We are also sitting on a 132% open profit on the remaining half of the Japanese yen trading idea we shared with our Currency Currents readers back on October 21st.   We’ve added a fresh new option position today and are looking to add another soon.

So if you are looking to get involved in currency investing, and don’t want to consider trading forex, currency options might just make sense.  And we help you every step of the way.  And to make it even easier, you can have our Currency Options Strategist service auto-traded for you by our partner at ClearPoint Capital Management.  And if you are an Alberta or British Columbia citizen, our partner Drew Zimmerman at Pi Financial is a full-service broker who can help.

To subscribe to our Currency Options Strategist or learn more, simply click here.

I am here if you have any further questions.

Thank you. 


Jack Crooks

Black Swan Capital

Twitter: bswancap