Risk Management For Your Out-of-the-Money Binary Options

The stock is moving against you, quick what do you do? This situation is inevitable; it is how you deal with these situations that will determine whether you will become a profitable binary options trader. In last week’s report we discussed hedging strategies to alter the risk profile of binary options trades to something more favorable than the average 70% return for a winning trade and 85% loss for a losing trade. The main assumption in last week’s strategies was that the option purchased had to be in the money prior to expiration. Well what can you do when your binary option position is out-of-the-money to manage risk? There are 3 key strategies we use in these situations to…

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