Screen Shot 2015-11-18 at 4.55.47 PM

Trading GOOG from the short side.

Screen Shot 2016-02-02 at 5.07.34 AM

Short from $750.50 [nice round number].

Now interestingly, using Binary Options, if in 5 days [expiry date], the price is $750.49 or less, the trade is a winner and returns 75% on invested capital. The other 25% goes towards trading costs etc. If the trade loses, viz, $750.51, then you lose 100% of your capital invested.

You can have your ‘expiry’ set at 30 seconds!

I’m only having a bit of an experiment currently to see whether this version of options has anything to recommend it.

I tried a couple of trades at 60 seconds. They were winners, but, actually counterintuitively, 60 seconds is actually a difficult timeframe to trade. You pretty much [to be safe’ish] have to catch the bottom tick. That’s actually difficult to do consistently.

Going for the 5 day expiry, is a more traditional time-frame to trade. The bonus being there is no requirement to maximise the exit to maximise profits, which is another tough call when trading. Do I hang on for more profit, or exit now, etc. Here, your profit is fixed. No decision required.

This trade expires on Friday 5 February. Either a 100% loser, or a 75% payout. Easy.

Advertisements