Binary Options Trading Strategy

First I want to say that this strategy involves buying 2 options on the same underlying asset. You will be buying both a call option, and a put option. Both options should be of the same investment value. Now, for this options trading strategy to work, you must have met certain criteria. They are as follows:

1. You Purchased A Call, or Put Option

2. The Option Is Currently In The Money

3. The Option Has Not Expired

If you find yourself in this particular situation, you are in a very powerful position to take advantage of this options trading strategy.

If you are in the position described above, you should consider buying another option on the same asset. You would want to buy the opposite binary option from the one you already have. If you purchased a call option, now you would want to buy a put option. If you purchased a put option, now you would want to consider buying a call option of the same value.

The idea behind this options trading strategy is very simple. When you have a binary option that is in the money, you have the power to create a range in which you can double your profits, and in addition, any losses will be much smaller.

Binary Options Trading Strategy Example:

This is an example that uses the imaginary stock "ABC". The value of the stock, and the amount invested are fabricated for informational purposes only.

One Day Call Option For ABC with 72% Return:
Amount invested: $100
Value of ABC at Strike Point: $44.25

Lets say you purchased this option at 10 am.
Lets say at 2 pm ABC is valued at $46.10.
That is a large increase for 4 hours. It might be somewhat unexpected.
You should consider buying a call option for $100 to double your profits if the stock drops from there.

One Day Put Option for ABC with 72% Return:
Amount invested: $100
Value of ABC at Strike Point: $46.10

So now you have the two options above. They both expire at the same time, at the end of the day. There are three possible outcomes, but only two possible financial outcomes. Lets see what they are.

First:
ABC expires between $44.25, and $46.10.
Result: Both options end in the money. Profit of $144 for total returns of $344.

Second:
ABC expires above $46.10
Result: Call option ends in the money for returns of $172. Put option ends out of the money for loss of $85 (assuming you use Anyoption which guarantees a 15% return on out of money options) for a total return of $187. Not a terrible loss on an investment of $200. Net loss of $13.

Third:
ABC expires below $44.25
Result: Call option ends out of the money for a loss of $85. Put option ends in the money for returns of $172. Total returns of $187. Net loss of $13.

Do you want some more information on binary options, or do you want to start trading now? If so , I'll give you a few helpful links to get you on the path to financial independence!

For more information about binary options, including a short review of some of the online binary options brokers, check out:

www.ez-binaryoption.com

To start trading right now, you can go to any one of these three online binary options brokers. They are all free to sign up, and charge zero commission on trades. Check out:

Anyoption.com

EZTrader.com

Binarixtrading.com