Hi all, I am new to the world of options trading, as I have been trading forex for the past 3 years. However, to smooth out the risk / reward curve that I have been facing over the most recent past I started looking at options. I have been investigating a strategy aimed at capturing the swap or overnight interest of a currency pair by using protective stops. I'd do this at Saxo or Ikon where I can be trading options as well as the spot in the same account. Buy 100,000 GBPUSD at 1.7840 Sell the 16-Dec-08 1.7900 Call @ .0303 (Credit $3030) Buy the 21-Oct-08 1.7800 Put @ .0300 (Debit $3000) This gives me 49 days of swap to collect, or about $563 total at 11.50 a day before the Oct Put expires. It seems there are 3 outcomes: 1) If the currency falls dramatically to say 1.7000 then I lose .0040 on the Spot / Put strike difference, but make it up with the Swap / Call depreciation. 2) If the Currency rises dramatically say to 1.8800 then I make the .0060 on the Spot / Call difference plus the swap, less the time decay on the call. 3) If the currency stays the same, then I keep the swap and the time decay on the call. So as long as IV on the call doesn't increase significantly I should be at break even to up on the position. Below is a graph created in OptionsOracle on the XDB, the PHLX tracker of the GBPSD, so it doesn't reflect the 49 days of swap, which seems to bear out my thinking. I just was hoping that smarter people than I could tell me where I may be wrong in my thinking on this kind of position, any help is greatly appreciated. Thanks!