70+% Accurate with Daily Action
Binary options trading on weekly expiry options is one way to play the large swings in the market. The beauty of this type of option trade is that the market need only close above (or below if put) your strike price JUST ONCE during the entire week in order to record a winning trade. Think of it as having the opportunity to have five opportunities for your binary options contract to expire in the money. All of the other (out of the money) expirations are irrelevant if the contract expires just ONCE in the money. Some traders use premium trading signals services to improve their chances of success.
Market Participants Following the Wrong Trading Path
Each week the trading path gets more and more absurd. Here we stand looking at a terrific gain in the major indices for the week and yet the economy is nowhere near on a foundation of any merit. I honestly don’t know where we get these upswings from but it can’t be from any hard data that is publically available.
Presently I for one see as much as 150-200 points of upside in this rally and then it’s right back to at or under 10,100 again. Am I the only person longing for REAL profit beats from S&P 500 companies? Am I the only person that thinks a jobless rate above 9.5% (with the U-16 over 15%) is economically disasterous?
Chart Followers Are Seeing the Black (and Red)
Binary options trading based on 1-2 year term charts appears to be as sane a way to look into the trading opportunities as any other method – at least when forecasting for the weekly options contracts. Daily contracts still seem to be 90+/-& governed by forex trading activity and (minor blips) Federal Reserve Bank Treasury Auctions.
The latest chart I looked at sees the market heading toward (but not yet at) a peak – hence the 100-150 point upside potential in the Dow (above). The warning indicator is that when the peak is reached and the switch is flipped, recent past history has shown the fall from the peak to be VERY fast. For the question of the weekly options trade it will depend greatly on where the Put/Call strike prices are set over the weekend. I would have to believe we’re going to near term peak mid-to-late next week then start the sell off the following week (post holiday). Based on the short trading week (only 4 closes / opportunities for in the money expiration) this may be the week to gather funds for the following week and hoard them for trading later. That’s my plan anyway.
Anyway, I figure I’ve blathered on enough for today. Hope your trading continues to be in the money.
PS. I forgot to mention – yields on weekly options are MUCH higher than normal binary options trading yields – usually north of 200%.
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