aliassmith wrote:MightyOne wrote:aliassmith wrote:MightyOne wrote:aliassmith wrote:GBP/USD > 1.5938 by 11am
buy at $25 per option
made $1400 on 19 options
Not sure exactlly how it works yet but it looks interesting.
If you use the closest strike as a reference then you will always know which action to take when it comes time to enter a trade.
Enter 2 strikes higher: More risk, but profits from smaller moves
Enter 3 strikes higher: Less risk, but profits from larger moves
3: 1.5998 <---Long this strike at <10 (buy low)
2: 1.5978 <---Long this strike at <20 (long on low numbers)
--------------3's boundary for longs---1.5948 (2's boundary for shorts)
0: 1.5938 <---Current price between 1.5948 & 1.5928
--------------3's boundary for shorts---1.5928 (2's boundary for longs)
2: 1.5898 <---Short this strike at >80 (short on high numbers)
3: 1.5878 <---Short this strike at >90 (sell high)
GBP/USD > 1.5978 by 11am:
If close > 1.5978 by 11am option settles at 100
If close < 1.5978 by 11am option settles at 0
If long the 1.5978 strike at 20 and price settles at 100 then profit = 80.
If short the 1.5898 strike at 80 and price settles at 0 then profit = 80.
When long, the price you pay + commission = risk
When short, 100 - Price you pay + commission = risk
I was looking at it a bit more. You could take strike prices out further
for less risk. You still have the opportunity to exit the trade when you
learning Nadex platform is different than spot.
edit.... almost forgot, spread is about $7/option
I noticed the high spread
Enter at your price or better.
If the market continues to rise then it will be at the lower end of the next higher strike and the strikes 2 and 3 higher should be available for the price you wish to pay.
If you can get an option 2 strikes higher for <15 then go with that one
Just purchase the option 3 strikes higher for <10
6 hour bars or greater + weekly binary = way to go
Seems like it would be harder to do your 5 wins in a row each week with
edit: GBP/USD > 1.5820 by 3pm EST
Sold 11 options at 82
hedge GBP/USD > 1.6000 by 3pm EST
Buy 11 options at 18
The 5 wins in a row matters a hell of a lot more than each week.