Applying Fibonacci
Levels for
FX Options
Presented by Toni Hansen http://www.TradingFromMainStreet.com
toni@tonihansen.com

Options Strategies:
For the sake of simplicity, the examples that follow do not take into consideration commissions and other transaction fees, tax considerations, or margin requirements, which are factors that may significantly affect the economic consequences of a given strategy. An investor should review transaction costs, margin requirements and tax considerations with a broker and tax advisor before entering into any options strategy.
Options involve risk and are not suitable for everyone. Prior to buying or selling an option, a person must receive a copy of CHARACTERISTICS AND RISKS OF
STANDARDIZED OPTIONS. Copies have been provided for you today and may be obtained from your broker, one of the exchanges or The Options Clearing Corporation.
A prospectus, which discusses the role of The Options Clearing Corporation, is also available, without charge, upon request at 1-888-OPTIONS or www.888options.com.
Any strategies discussed, including examples using actual securities price data, are strictly for illustrative and educational purposes and are not to be construed as an endorsement, recommendation or solicitation to buy or sell securities.

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About ISE FX Options
 Accessible through your options broker
 Exchange-listed securities
 Cash-settled in U.S. dollars
 European style exercise
 Can be traded as spreads
Currency Convention
Australian dollar USD/AUD
British pound USD/GBP
Canadian dollar USD/CAD
Euro
Swiss franc
Japanese yen
USD/EUR
USD/CHF
USD/JPY
Symbol
AUX
BPX
CDD
EUI
SFC
YUK
Investors can view the underlying rates from several leading market data vendors and financial websites, including Big Charts,
Bloomberg, ILX, Reuters, and
Yahoo! Finance.
www.ise.com/fx

• Please visit ISE archives at:
• www.ise.com/archives
• For upcoming ISE webinars visit:
• www.ise.com/webinars
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• www.ise.com/fx
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FX Options Webinar Series
Ilian Yotov on "Applying Options Methodologies to Currency Trading"
Steve Misic on "Options Hedging Strategies for Forex"
Date
11/16/08
11/18/08
Mike Tosaw on "FX Options - Low Correlation Alternative to the Equity Market" 11/23/08
Tom Busby on "Dollar vs. Euro - FX Options Trading Opportunities" 11/25/08
John Netto on "Winning Options Strategies for the Forex Trader" 11/30/08
Time
4:30 PM
4:30 PM
4:30 PM
4:30 PM
7:30 PM

Leonardo Pisano introduced the numbering sequence now known as the Fibonacci sequence to the West in 1202 in his publication Liber Abaci .

The Fibonacci numbering sequence is created by first beginning with 0 and adding 1. At that point, each new number in the sequence is the sum of the previous two numbers.
For instance, 0+1 = 1, 1+1=2, 1+2=3, and so on.
The sequence of numbers hence looks like this:
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144…

The relationship of each two adjacent numbers within this series yields a predictable ratio:
 When you divide the former number by the latter after the first 3 pairs, beginning with 8 divided by 13, it yields approximately
0.618.
 Dividing the latter number by the former number after the first 3 pairs also results in another relationship from the sequence. This relationship yields approximately 1.618.
 To take these relationships further, if you skip a number and then divide, the result is 0.382. This number, when added to 0.618, equals 1.

 138.2%
 100.0%
 61.8%
 50.0%
 38.2%
 0.0%
 -38.2%

Support & Resistance
Support & Resistance levels are price zones in the market where a security is liable to react in some manner that affects the trend which is in play as the support or resistance level hits.

Chart © 2008 IntelliChart

Chart © 2008 IntelliChart

Chart © 2008 Finance Chart

Applying Fibonacci
Chart © 2008 Finance Chart

Applying Fibonacci
Chart © 2008 Finance Chart

Applying Fibonacci
Chart © 2008 Finance Chart

Applying Fibonacci
Chart © 2008 Finance Chart

Applying Fibonacci
Chart © 2008 Finance Chart

Applying Fibonacci
Chart © 2008 Finance Chart

Applying Fibonacci
Chart © 2008 Townsend Analytics Ltd.

Applying Fibonacci
Chart © 2008 Townsend Analytics Ltd.

Applying Fibonacci
Chart © 2008 Finance Chart

Applying Fibonacci
Chart © 2008 Finance Chart

Applying Fibonacci
Chart © 2008 Finance Chart

Applying Fibonacci
Chart © 2008 Finance Chart

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