The forex options course PDF

The Forex options course

The forex options course PDF-  A Self-Study Guide to Trading Currency Options by Abe Cofnas is designed to help forex traders build upon their knowledge and skills in trading forex and apply it to forex option strategie.

Category: Forex

Author: Abe Cofnas

Language: English

Download link: At the end of the post


This book is designed to help forex traders build upon their knowledge and skills in trading forex and apply it to forex option strategies. There are important differences between spot forex and options trading. In contrast to the spot forex trader, the options trader puts on trades “anticipating” a move over a longer duration of time. Whereas the spot forex trader concentrates on trades to achieve profits intraday and even intrahour, the option trader is liberated from the slavery of the screen and can set and let fundamental and market forces generate the intended profits. Position trading strategies become an important part of the repertoire of the forex option trader.

Forex option trading also is accompanied by an entirely different mind-set from spot trading. While neither one can claim superiority over the other, there are significant consequences to pursuing a forex option mind-set. The differences between the forex spot and option trading perspectives generate different strategies and goals and also a different need for information. For example, the spot trader often seeks frequent small moves and focuses on intraday and intrahour charts, avoiding the need for constantly absorbing information on fundamentals and the big picture. In contrast, the forex option trader’s decision to put on a trade is a result of a more intense evaluative process where the trade fits optimal conditions, since forex option trading is less frequent than spot trading. Forex option trading requires more experience evaluating broad market conditions and top-down analysis, while forex spot trading requires greater focus on trading itself with precision management of moment-to-moment trading.

This book is different from the option literature that is available—a great deal on the Internet—because it places the concepts of option trading in a strict forex environment with examples to guide the reader. The book is also designed to prepare the forex trader for new option variations and intermarket choices for shaping and putting on forex options. Those individuals who are familiar with equity option or futures option trading will find the application of basic option principles to be straightforward. But it should be clear that in the coming years forex trading is going to occur in many venues. The rise of exchange-traded funds (ETFs) provides a rich new source of data on forex option
price action. Those traders having equity platforms can immediately trade forex options through their equity accounts because of the increasing availability of currency instruments such as those currency options provided at The International Securities Exchange (ISE) and Philadelphia Stock Exchange (PHLX) .

The goal of this book is to provide a “get started” manual for understanding and trading forex options, from the basic plain vanilla calls and puts to the intriguing firstgeneration exotic binary options. Our goal is to provide the reader access to the right information to make the most well-informed decision. The challenge of trading forex is among the most exciting of all the markets, and this book is designed to help the trader meet those challenges.

Contents– The forex options course PDF

About the Author

PART ONE Key Option Elements 1
CHAPTER 1 The Elements of an Option Trade 3
Plain Vanilla Options 3
Purchasing an Option 3
Writing an Option—Beginners Don’t 8
Elements of an Option Trade or Ticket 10
The Greeks 15
Summary 23
CHAPTER 2 What Affects Forex Option Prices? 25
Time 25
Volatility 27
Summary 50

PART TWO Forex Market Drivers 51
CHAPTER 3 Finding Direction for Your Forex Option Trade 53
The Importance of Interest Rate Expectations 53
How to Anticipate the Direction of the Federal Open
Market Committee (FOMC) 54
How to Use Housing Sector Data for Developing Forex
Option Trade Direction 62

Evaluating Real Estate Exchange-Traded Funds (ETFs) 71
Summary 77
CHAPTER 4 Tracking Fundamental Directions 79
Using Currency Targeted Exchange-Traded Funds (ETFs) to
Determine If the Market Is Dollar Bearish or Bullish 79
Diagnosing Global Economic Conditions 83
Group Currencies by Purchasing Power Parity (PPP) (Big Mac Index) 84
Tracking the Currency–Commodity Connection 94
The Currency Outlook Checklist 97
Summary 98

PART THREE Timing the Trade with Technical Analysis 99
CHAPTER 5 Chart Patterns and Trade Entry 101
Chart Patterns and How to Use Them 101
Scanning for Volatility 110
Summary 114
CHAPTER 6 Using Experts to Shape Trading Decisions 115
Forecasting Accuracy? 116
Professional Sources of Expert Forex Opinion 117
Follow the Housing Prices 122
Follow the Think Tanks 124
Follow the Bank Forecasts 125
Summary 128

PART FOUR Forex Options Strategies 129
CHAPTER 7 Vanilla, Spreads, and Volatility Strategies 131
Plain Vanilla Strategies 131
Currency Pair Spreads: Playing the Correlations and
Divergencies 133
Commodity–Currency Spread Strategies 139
Carry Trade Option Strategies 144
Trading Delta Call/Put Ratios 147
Trading Vega or Volatility 150

Contents vii
Gamma Spread Trading 154
Key Forex Option Combinations and Components 156
Summary 163

CHAPTER 8 Binary Option Strategies 165
What Is a Binary Option? 166
Using Exotics to Derive Market Sentiment 170
Combining Binary Options with Plain Vanilla
and Spot Trading 173
Summary 177

CHAPTER 9 Option Strategies for Extreme Outcomes and Scenarios 179
Recession in China or Continued Boom 179
Option Trading to Play Carry Trades with Hedge—Putting on Collars 181
$ 1000
+ Gold and $200 + Crude Oil 182
Trading $Oil Shock ($200) in Forex Options 183
Play a U.S. Stagflation and Inflation 184
Preemptive Attack on Iran 184
Recovery of Housing 185
Summary 185

CONCLUSION Putting It All Together 187
Achieving Optimal Forex Option Trading Fitness 187
Forward Testing Your Forex Option Trading Fitness 188
Where to Trade Forex Options 189
APPENDIX Selected Futures Columns 191
Index 2

About author

Abe Cofnas is a thought leader in the Forex industry. He has over 20 years experience in analysis, and coaching in forex trading, binary options, and related markets. Author of Planet Forex (Palgrave-Macmillan)

He is world-class presenter and seminar leader with experience in Shanghai, Dubai, Australia, and the US.

Author of 5 published works in the field.

Mr. Cofnas is an entrepreneur with deep interest in algorithms and has completed innovative algorithms that “watch” trader behavior and using swarm intelligence generate sentiment directional signals. He has also developed algorithms that measure organizational culture.

In response to the Corona Virus shock, he has created a special course at on to trade the sentiment shockwaves.

Read his book: Planet forex- Currency trading in the digital age

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