There are two types of option traders, boring traders and thrill seeking traders. First we will focus on the thrill seeking traders. A trader that seeks something new and exciting is usually a trader that purely uses technical analysis and the stock chart speaks to them personally. They could not care less about the fundamentals of the stock all they want is action!
The way we screen for stocks with action at the Binary Options Exchange is by using a mix of the volatility and the ATR (Average True Range).
Our current watch list for the week of February 11th looks like this:
|AAPL||Apple Inc.||15.11||3.19%||Jan 23/a|
|AMZN||Amazon.com Inc.||7.86||2.44%||Jan 29/a|
|BIDU||Baidu, Inc.||3.57||2.82%||Feb 04/a|
|GS||The Goldman Sachs Group, Inc.||2.56||1.61%||Jan 16/b|
|SINA||Sina Corp.||1.97||3.57%||Feb 25|
Although we are still in the heart of earnings season none of the above stocks are announcing this week but look at their ATR. We can surely find a trade opportunity this week in Apple and Amazon.
The beauty of trading binary options is that the price of the option stays the same for a stock like $AAPL with a price in the $500 range as for a stock like $FB (Facebook in the $30 range). Why would a binary option trader look to trade something that moves $0.50 a day when there are stocks moving $0.50 in a matter of minutes.
For traders that enjoy trading binary options on the currency markets, have a look at the binary options trading calendar for February. It is jam packed with events that will surely move the Forex markets. Especially with the latest out of the Bank of Japan.
We wish you a successful trading week!