On May 28th the September 2014 Globex (GBX) Japanese Yen was trading @ 9814
The following trading was initiated for Japanese yen only.

This one is different from the other two trading plans.

Sold two (2) September GBX Japanese Yen 9900 call strike price for 100 each (100 X 2 X 12.50) = $2500.00 you receive
Now bought one (1) September GBX Japanese Yen 9700 call strike price for 198 (198 X 12.5) =$2475 you pay
Sold two (2) September GBX Japanese Yen 9700 put strike price for 84 each (84 X 2 X 12.50 = $2100 you receive
Now bought one (1) September GBX Japanese yen 9900 put strike price for 186 (186 X 12.5) = $2325 you pay more for the put by $225 than collected.

Positions at a glance:

+1 Call Sep14 9700 at 198 -2 Put Sep14 9700 at 84

-2 Call Sep14 9900 at 100 +1 Put Sep14 9900 at 186

You follow the movement of September 2014 Globex Japanese yen and if necessary we make changes.

The margin for these positons is less than $4000. The maximum gain is $2300 if the J Yen stays between 9700 and 9900 until expiration that is 200 X 12.5 =$2500 – 200 over paid over premium received for buying the 9900 put.

That is a gain of 2300/4000 = 0.575 x 100 = 57.5% in three months.

If it moves beyond these the positions can be easily readjusted without much problem either in terms of time or premium received. If the J yen goes below 9700 put or above the 9900 call you gained 200 points on the 9900 strike put or 9700 call. Watch for the put below 9700 and call above 9900 for adjustments with time or closing the positions with profit.

1. Always try to initiate positions in the globex Japanese yen (6J) 90 to 100 days before expiration. You get better premiums for risk returns. Major quarterly expirations are March, June, September and December. Check the options expiration calendar for currencies at CME group web site. Initiate the options as per the instructions. You can initiate the options if the following criteria are met.
2. Check the latest price of the Globex Japanese yen futures contract for the expiration date. Example if the September 2014 globex Japanese yen is trading at 0.9815 also usually referred to as 9815 on May 28th, 2014 consider the strike price of 9800 as your base strike price.
3. Strike prices are usually at 50 point intervals apart (0.0050= 50 points). Most of the option strike matrixes give out option premiums calculated in dollar terms.
4. Check the value of the option premium prices. You should get at least 200 points in the intrinsic value of the initiated strike prices.
5. In this trading plan buy one in the money call option within two strikes with the premium collected by selling two strikes out of the money calls. Make sure the premium received is adequate to buy the call option. . Check for the value of the premium prices.
6. Do the same thing with the put strike prices. Purchase one in the money put option two strike prices in the money with the premium collected by selling two strikes out of the money put options.
7. When the volatility is low the option premiums are low. Then look for the different strike prices that fit the criteria. One side can be 100 points and other side can be 200 points.
8. If for any reason (usually low volatility) the premiums are not covered may be 5 or 10 points its ok. You may adjust the strike prices to cover it.
9. Here is the grid for option matrix

Calls       Strike prices       Puts

The two calls option premium sold at J+2 should cover the purchase of one call at J-2

J+5

J+4       +4

J+3       +3

Sell two calls       J+2       +2 buy one put

J+1       +1

Base strike price (J)

Futures contract price/month

-1       J-1

2 buy one call       J-2 sell two puts or lower

-3       J-3

-4       J-4

The two put option premium collected J-2 or lower should cover the purchase of a put at J+2.

This trading plan is different from the Euro currency plan. Let us see how well we did with this plan. As of august 1st, 2014 the September 2014 Japanese yen closed at 9753.

At the present time the option value of the current position is a gain of 141 points that is 141 x 12.50 = $1762.50.

The gain is 1762.50/4000 = 0.4406 x 100 = 44.6%.

This is a gain of 44.6%. Now I can close these positions and initiate to December 2014 J yen option positions as per the criteria.

If the J yen moved beyond the 9700 put or 9900 call the strike prices rearranged by selling appropriate calls or puts.