If you’ve been watching the market over the last 2 weeks then you know that it’s basically been a rocket ship on the way up since the election. After a brief moment of panic on the night of the results, the market has managed to climb higher with momentum and US indices are now at or near all-time highs across the board. When scanning the market for trading opportunities, defined risk binary options are another investment vehicle worth considering.
Are you bullish and looking for a low risk – high reward trade? You can buy an out-of-the-money binary options above where the market is currently trading.
Are you bearish and searching for a similar low risk – high reward trade to profit from a fast downward market move? You can sell a binary option below the current market.
Here is a chart of the indicative index, which is based off the CME E-mini S&P 500 Index, as of 7:20 a.m. ET this morning. Along the right axis are some of the daily binary options available on the Nadex Exchange, which expire in almost 9 hours at 4:15 p.m. ET today.
Just looking to profit from fast moves in either direction? Combine 2 binary options to create a multi-leg strategy that will profit if the market makes a dramatic move up or down by the end of the trading day.
The U.S. is about to inaugurate a new president in January, and the Fed is expected to raise rates in December. With volatile markets in play now is a great time to check out the Nadex Exchange. When trading on Nadex your risk is always defined, which helps you avoid unplanned losses. Open a demo account today and see for yourself the trading opportunities available on a daily basis on Nadex.
Note: Exchange fees excluded for calculations.
Futures, options and swaps trading involve risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results.