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Covered Calls in the Forex |
Covered calls and covered options in general offer a unique benefit for traders. Over the long term selling options against a long or short underlying position reduces volatility without impairing returns. In the forex vanilla options like calls and puts have only recently become widely available so these strategies are new to many forex traders just learning about the options market. 
This presentation is a recording of a live webinar I presented about the benefits of selling covered options. You will learn the following things.
- Covered options reduce volatility and improve the risk profile of a diversified portfolio. For so little effort this is one of the most significant benefits of a covered options strategy. It is a way to increase control over your trade without offsetting profit potential in the long term. If you need some help understanding the basics of covered calls, click here.
- It is possible to sell covered options on forex currency pairs within a single stock/options brokerage account. It is not actually necessary to even have a spot forex account or currency futures account to trade buy-writes or to sell naked puts (the same trade from a risk standpoint). In the video I will include an example of this specific approach to this strategy. If you need help understanding currency ETFs or ETFs in general there are several entry level articles on the subject here.
- The difference between exchange traded FX options and those offered by over the counter dealers. The OTC versions of these options have the single benefit of flexibility but that benefit is somewhat offset by costs and a lack of transparency.
I have made the assumption that the video viewer has a familiarity with options and the forex before watching. If you need help understanding these concepts we have several free courses on options and the forex within the "options" and "forex" tabs here on the www.learningmarkets.com site.
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