Evening recap:
So we made the call about 10:25 EDT with the Dow and S&P 500 trading down between 0.33% and 0.47% depending on when you happened to look at the ticker. Forex cross rates we’ll have to fudge a little because of the imprecise time of the market alert but movements were strong enough throughout the day to prove the point. Taking the high points (meaning worst possible start point) of 10:25 we’ll call the CAD/USD .9734, AUD/USD .8626, and NZL/USD at .6967 as of 10:25am. The market swing from negative at the open to positive just before 10:30 was clearly visible, and more importantly, tradable.
Binary Options Trading Was Profitable If You Read the Market Correctly This Morning
By the end of the day all of our picks (referring to the NZL, CAD, and AUD as my “resources forex crosses” traded via binary options in addition to the Dow, DIA, and SPY binary options) were in the money. Today was just one of those days that even though the market didn’t move enough to make options trading profitable, the binary options trading went off just fine for those able to pick the direction of the market and make it stick through end of day. Dow, SPY, and DIA basically ended flat from yesterday (plus 0.33% to 0.47% versus the 10:25am alert). Taking the worst possible sell point the crosses ended up: CAD .9753 (+19 pips), AUD .8628 (+2 pips) NZL .6973 (plus 4 pips) at the end of the day. Even if you did a relatively poor job of market timing in any particular given moment and your binary options broker ended up giving you the worst possible spot contract price you still should have ended winning every trade had you gone long binary options calls at 10:25 on Dow, SPY, DIA, AUD/USD, NSL/USD, and puts on USD/CAD (puts because the cross rate convention for that trade pair puts USD as the base currency).
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Also Don't Miss Out on the New Binary Options Trading Signals and Free Binary Options Trading CourseIt doesn’t always work out this way in pure options trading, that’s why you stay mostly in cash and avoid throw-away trading days like today in the market. On the other hand, when you see nothing else going on and the market shows a sudden appetite for risk, that’s the time to pick a few risky binary options assets and go long calls.
Epilogue:
In fairness, normally I would have made an additional market timing pick on the VIX at the same time, believing that it would fall (opposite the S&P 500 expected rise). At 10:25am it was at 26.35 and it ended at 26.06, so that one would have panned out as well. Lately (and worth noting) I haven’t been as comfortable making the VIX pick, as my present market indicators don’t reliably gauge the VIX direction quickly or accurately enough for my binary options trading comfort zone.