UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: blacktreechaser Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35339  
Subject: Way OT "binary" options on silver Date: 3/25/2013 5:21 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Post of the Day:
Macro Economics

Intel's Broadwell Potential
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement