Currently I have only found FXY (in equity market) which is decent it seems I can't find futures options for the yen, (or the Nikkei for that matter), do they exist? what other good ways are there? note I don't want to play w margins, just options
http://www.cmegroup.com/trading/fx/...&floorContractCd=J1M3&expMonth=201306&prodid= They are not very liquid but you could probably get fills at certain times. Your approach may be inadvisable though as too late in the move, and too much in line with market sentiment.
Another potential vehicle is the recently introduced PHLX currency options (Yen/USD is ticker XDN). I traded XDN once this month and was pleased. The bid-ask is wide but I was filled just off mid. http://www.nasdaqomxtrader.com/Micro.aspx?id=phlxwcoproductspecs#jy
it would be nice if there were futures options on the yen- or something similar the only downsides of this one that I see are - no options more than a year out (so no opportunity for long-term capital gains) again future options on the yen would be ideal but it doesn't appear they have, do you know why not?
There are futures options on the yen and that is what my link above points to. I have traded them (with difficulty because they are thinly traded). IB has them. It is true that they are thin and true that they do not go out more than a year. Futures are not where the real volume in forex (or forex options) takes place. Forex futures and forex futures options are just a footnote to the over the counter market. Unfortunately our friendly U.S. regulators forbid OTC forex options being made available to retail traders because we would be too naive to trade them, in their view. Isn't it wonderful to be protected so much?
i can confirm you can get good liquidity in FXY options although sometimes that extra nickel you have to pay/give up is frustrating compared to normally trading penny wide options.