Worshipping Money Focus on Cash Flow, not GAAP

Writing Forex Options

When creating a forex SPOT option, investors benefit because they are setting their own price and expiration date - there is complete control over the transaction. The premium quote is the only variable that the Forex trader has no control over and this price is determined by the strike price, expiration date, and risk/reward ratio - all of which are in the investor's control when writing the option. If an investor writes an option and does not like the premium quote, there is no obligation to buy the option. However, once a SPOT option has been purchased, the investor is stuck with it. Unlike stock options which can be sold back to the market prior to the expiration date, Forex SPOT options cannot be traded.
Source: http://www.investorguide.com/igu-article-978-forex-basics-investing-in-forex-options.html