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|Subject: Way OT "binary" options on silver||Date: 3/25/2013 5:21 AM|
|Author: blacktreechaser||Number: 34843 of 35570|
Noticed ads on bloomberg and cnbc channels for something called binary options. Had no idea what they were
The account site is nadex.com (north american derivatives exchange), the options expire daily or weekly...the weekly ones on silver futures contract all expire on friday.
The buy/sell spread is wide and commission is about 2% if you take profits, 1% if you lose.
I"m not sure how these options could be used to hedge any positions due to their very short terms and high costs. Does not strike me as any kind of investment instrument. It seems the only use for these binary options is day-trade gambling.
Now that being said, I have more that doubled my money in about two months on the silver futures options, trading that the price will remain relatively stable, making 3 to 5% per trade, some weekly, but mostly daily. Just put on a position for Monday that will close in about 8 hours and be profitable if May contract closes above $28.40.
If interested, check it out. It is just day trade stuff...but hey, my money is now off the table...so I plan to keep at it and see how it turns out. It is not time consuming at all. Monday is the only day that their market opens at an unreasonable hour.
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