CME Futures Options (FX)

J

Jeanne

Helllllllllp!! I've spent countless days looking for the ideal setup to trade CME (FX) Futures Options - for the most part my search has only made me overwhelmed by the possibilities and complexities. I've looked through all of the threads and still lack a definitive conclusion. Furthermore many of the analytical tools out there don't cover futures options or do a poor job of it. Hmmmmph! :) Any ideas will be hugely appreciated.

Thanks,

Jeanne
 
Quote from Jeanne:

Helllllllllp!! I've spent countless days looking for the ideal setup to trade CME (FX) Futures Options - for the most part my search has only made me overwhelmed by the possibilities and complexities. I've looked through all of the threads and still lack a definitive conclusion. Furthermore many of the analytical tools out there don't cover futures options or do a poor job of it. Hmmmmph! :) Any ideas will be hugely appreciated.

Thanks,

Jeanne
More...

First off why do you want to trade FX options? I just checked my Interactivebrokers account and it appears that you can get good quotes with a tight spread if you want to trade with them even though the volume is low. I just opened the options analytics window and it shows the greeks calculated.

What type of strategy are you considering? I would make sure that it involves trading the underlying because that is where the volume is. I think the only way to get an option fill is to punch(buy at he ask, sell at the bid).
 
Thx. ZF trader and sideshow Bob for your replies...

>I just opened the options analytics window and it shows the greeks calculated.

That's good news, IBs website mentions that their analytical tools are not applicable to futures options... hmmm. I'll look into IB's execution and decision tools.

>What type of strategy are you considering?

Low volume spreads and straddles.

>I think the only way to get an option fill is to punch (buy at he ask, sell at the bid).

It does seem to be the case, although Dec ATMs seem reasonably liquid.


I would love to find something along the lines of HSBCnet FX Derivatives Analytics tools - the volatility cone is especially cool.

http://www.hsbcnet.com/hsbc/home/about-hsbcnet/solutions/markets-hsbc/fx-derivatives

Again, any ideas would be much appreciated.

Thanks, Jeanne.
 
You might see a good pop in FX futures trading (which will possible help drive options volume) when Eurex launches their FX futures next Friday, Sep 23.

http://www.eurexus.com/products/fx.html

Volume growth has happened in other products where futures exchanges have competed And exchange fees have dropped as an additional benefit of competition.

It is probably a good idea to check out Eurex FX products when they launch.
 
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