Our optimism wasn’t enough to push markets higher as we waited all day yesterday to take advantage of binary options but were greatly limited. The reason is that the major markets were down on the day after Europe reported more bad news. Economic figures showed that the European economic business climate is far worse than previously thought. This pushed the Dow down 0.78% to 12927. The only good news in that results was that last week we explained that 13000 was a critical level to keep focused on with your digital options account. The reason being, if you were quick and focused, you could have easily taken a Below option yesterday when this level broke downwards as did in fact occur.
The Nasdaq delivered a similar trading result after breaking below 3000 to 2970.45 after falling 1.0%. But we didn’t recommend trading the Nasdaq due to the fact that the index was literally on top of the support level on Friday and limited our ability to analyze the probability of a move in either direction, so we decided to stay away from this one.
Our focus on forex pairs like the EUR/USD of late have been isolated to Range options. Unfortunately, not every brokerage is offering Range options and there is a reason for this. On the one hand, binary brokers like to offer a nice array of possible trading possibilities however, Range options are slightly more problematic for both sides which is why we have limited the recommendations on this binary option type to a minimum. The problem stems firstly from the side of pricing. Brokers are going to price Range options as low as possible. Meaning, they are going to always be in a situation where the range being offered is incredibly tight. As opposed to above/below options which are quoted at the same price, leaving the trader in a position to choose whatever direction he wants, with Range options, the range itself is in the hands of the Brokers’ dealing room and as such, they will always look out to be conservative. This has caused brokers working with SpotOption trading platforms to simply not include them. We will be adding a few reviews of new brokers in the broker reviews section where you can see how this relates to them, but for now, we will try to stick to above/below options.
With APPL stock again stretching losses, we focused instead on the gap it had to fill in. Yesterday we explained that Below options should be taken ONLY if 567 was broken. This should have left most traders who didn’t opt for an end-of-day option, in the money. However, if you waited till the end of the day, you likely lost money. We tried to provide a very conservative recommendation on APPL, but it didn’t work out. However, today, any break above 577.5 will allow Above options to be traded while any break below 567 will again allow the use of Below options on the largest stock on in the world with binary options.