Currency OptionsA Simple Strategy for Mega Profits

By: Kelly Price
Currency options if you buy them offer you unlimited profits and limited risk – that’s good, but your chances of success aren’t good 90% of options expire worthless.

On the other hand, if you sell options you have a 90% chance of success and if you do it correctly, then you can build huge profits over the longer term.

Below we are going to look at a strategy that has the odds in your favour and maximizes your chances of success when selling premium.

So if the chances of success are so great why don’t more people sell options?

This can be summed up in one word – RISK

On the face of it doesn’t look good taking an unlimited risk to get a limited gain, but of course if you constantly pile up small profits by collecting premium with currency options then you can make big profits – let’s look at how to do this and keep the risk down.

Getting 90% + Odds On Your Side For Huge Gains

If you want to use a currency trading system based around options selling keep the two points below firmly in mind to get the odds even more on your side.



1. Sell Greed and buy fear.

Option premiums become high when a market is driven by greed and fear - these set ups provide you woth a chance to trade and build big profits from your forex trading signals.

So when markets skew a long way from the “fair value" you sell.

The two indicators below are great for spotting contrary trades and are explained more fully in our other articles.

This is the set up you are looking for:

Look for markets that are very bullish or bearish by checking the % bullish indicator and look for below 15% bullish and above 85% to isolate opportunities. Next, look for commercial buying of bear markets and selling of bull markets via the commitment of traders report.

Use your charts to enter and sell options behind the next level of support or resistance.

2. Get time on your side

When you are buying option premium, you want lots of time on your side when you are selling go for the opposite.

Time decay at the end of the life of an option kills it quickly, so use it to your advantage and sell options with short times to expiry.

This is not a game for amateurs

If you want to do a forex trading strategy that includes selling currency options - keep the following in mind:

The above is a simple strategy and it works and it needs courage to do – Selling options is a big boys game and you need to be well capitalized, have strict money management and be prepared to trade against the consensus and the majority of forex traders.

Trade with 90% odds of success

If you can adopt the right mindset, spot the opportunities driven by greed and fear and have the courage to trade them by selling currency options, you can trade with 90% odds of success on your side and pile up huge profits.

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