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From the lens Binary Options | Trading System | Strategies.

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  • gosmart Oct 21, 2011 @ 9:43 am | delete
    Great system when it applies but what if after the call option the price goes down?
  • optiontradingtutorial Oct 21, 2011 @ 12:56 pm | delete
    You have two options if the market moves opposite: you can close off your position quickly guaranteeing a high likelihood of small loss (5% in our example with a tiny % chance of large loss) or you can ride it out unhedged.

    Either way - it is IMPERATIVE that you get the initial direction right. If you can get the initial direction right and can close off the hedge you only have to be correct on BOTH contracts a TINY percentage of the time to be very profitable.

    I hope that answers your question.
  • gosmart Oct 22, 2011 @ 1:40 pm | delete
    Thank :)

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