Binary Options: Weekly Touch Options Trade Opportunities (7/30-31)

Get Your Binary Options Trading Course Here — A $99 Value Absolutely FREE

With a potential US default event deadline set for August 2, volatility within the US stock market should pick up during the week. There are a few ways to play this potential volatility using the weekly options (One-Touch) offered on the Anyoption platform. Weekly Touch Options trades can only be placed on the weekend so you have until Sunday night to place your trades. Here are a couple trades you may want to consider:

Bank of America (BAC): The financials are highly correlated to this potential US default event and traders started positioning for movement within BAC on Friday through the use of traditional weekly options. According to Fred Ruffy on Seeking Alpha, call buyers dominated action in BAC weekly options with most of the action centered around the 10 and 11 strikes. Anyoption is currently offering calls at $10.10 and puts at $9.32 on shares of BAC, which closed at $9.71 on Friday. In order to receive the 220% return shares of BAC would need to close above $10.10 (if you purchased the call) or below $9.32 (if you purchased the put) on any day (M-F) next week. If you don’t want to pick a direction you can simply purchase both, a binary options strangle. In this scenario your likely max potential return would be half the 220% or 110%. But hey you didn’t have to pick a direction and you can still double your money!

Dow Jones: Similar to the BAC example above, traders can purchase calls at the 12410 level and/or puts at the 11875 level with a potential return of 380%, same expiration rules apply.  Just to note this same range (roughly 2.2%) was offered last week and the low strike was hit by Wednesday…and this was with no specific market catalyst. This seems like a pretty high probability trade to make, unfortunately Anyoption doesn’t offer Index trades for US traders. TraderXP does but they are undergoing some maintenance this weekend so I’m not sure of their availability.

 Check Out Anyoption’s Weekly Touch Options Here!


Leave a Reply

Your email address will not be published. Required fields are marked *