Do you mean it's preferable to sell ATM straddles on Forex options as opposed to OTM stangles? Would I get tighter spreads on ATM straddles? (Perhaps as low as 15 pips?) I still can't resolve this problem: On the IKON GM platform, PIP quotes on Forex optionsa re ALWAYS 10 pip spreads, and when I call in the order to get better than 20 pip spreads on a straddle, they talk to me like I just landed from Mars. In terms of selling ATM straddles, I guess I'm esentially making a speculation that IV will decrease or the underlying won't move. This is the only way this strategy makes money, right? Can someone explain an alternative to these strategies so that I'm not making the brokers rich at my expense?
My experience is entirely with trading options on ETF's, stocks, and indexes. I'm discovering that the world of FOREX options is an entirely different universe altogether. Is it fair to say that it's not recommend to trade FOREX options without using a strategy involving SPOT? Selling strangles doesn't work, spreads don't work, and selling straddles don't really work because of the huge spreads. Excuse me if this question seems stupid, but, if I want to scalp, is the starting point usually a long straddle? Thanks, Eric