Ever since I got fascinated by volatility, I began researching and studying stock and currency options. My currency broker offers "box options" where you create a "box" in the future hoping that the currency will either "hit" or "miss" the box. If you're right, then you'll get a payout. If you're wrong then you lose your option payment. These options are different than the typical stock options where you can buy calls and puts or sell calls and puts. The broker only allows you to buy and prevents you from writing or naked selling. I guess that's "safe" for a newbie like me to do.</p
The minimum cost to buy and option is $1 so I decided to buy a USDJPY option today. The payout is only 16 cents which is a pretty stupid reward to risk ratio but I have a higher probability of it being "hit." We shall see if this is a wise endeavor!
Update: For those who wanted to know where my "box" was, here it is: