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EURUSD Put Option Fiscal Cliff Style

We opened up the new year with a solid put option on the EURUSD. A win to start this short week will hopefully be a guidance of what’s to come in the near future. A trade was spotted early this morning, but we weren’t able to get in it. It was a pain free call option at the R2 line. It took us a while to find the next setup, but it paid off greatly a couple of hours later.

After the missed trade early this morning on a call option we started watching price move back up into an area for potential put options. Price gravitated slowly to the North Side several pips. As price started to consolidate it did form a couple of five-minute wicks on a couple of candles.

Price then proceeded to move down a little bit and then eventually came back up to reach those same wicks that were formed in the past 30 minutes. We entered our put option near the highs of this most recent move. Price moved against us by two pips within the first 30 seconds of the trade. However, price then fell off and never looked back. Price jumped 11 pips in our favor to close out the 24 option expiry.

This particular trade had very little pain and would be considered one the best trades of the day. We will strive to find more trades like this going forward and hopefully they do show their faces. Price prediction is not always easy, but if you remain patient you may see the great setups come to you.

The image below shows the actual trade set up on a 1 minute chart. Notice how price action had been moving back up. You could see our arrow pointing down and that is where we entered our put option. Price then fell off over the course the next six or seven minutes. This was a big winner in the end.
Put Option Takes off in Our Favor
At this point in the day it is clear that you could trade either call or put options based on the current trend. Although we are seeing a more northern trend, put options are still available. Obviously any pullback will be a good area for a call option if price remains strong. Right now, price has fallen back to the whole number of 1.3200. This would have made a nice 5 minute wick trade. It is amazing how earlier this morning we saw 1.3300 and now we are seeing a 100 pip drop off. Consider both directions the rest of the day. A huge reversal could be in play right now.

We’ll continue trading all this week and into next week on the binary options market and if you have any questions please make sure you leave them below. It’s nice to get back to some normal market conditions.
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