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How About an Apple Binary Option

A little change of pace to start the week at BinaryOptionTrading.com. I noticed how the price action on the Euro-dollar was quite boring this morning. Price had been sitting in a channel that was too tight to trade and if you entered one of those particular trades you most likely would have been chopped out. This is why I started looking at the stock market. The markets were opening up pretty strong and it put my attention on a few stocks. This wasn’t something I had planned, however I have been seeking new instruments to trade on the binary options market.

The US markets were opening up strong. Immediately I opened an Apple stock chart on my metatrader platform. I wasn’t able to determine if there was a slight delay between the price action on the charts and on the broker. Over the next couple weeks I will look into this more clearly and determine if this will be a factor for trading. If there is a slight delay it can be in our advantage. It’s best to know what price actions can do before it actually does it right? With so many feeds out there you have no idea which one is the best. This may be worth an investment if you can find the fastest price feed and compare the two. Take advantage of an arbitrage trading setup.

In any case, I took this trade at 24option.com on the Apple stock with an 81% payout. Remember to check out our Rate comparison chart for all the brokers. Apple stock has been a high flyer pushing ranges between $10 and $20 a day and it sees a huge spread between the bid and the ask. This is what makes trading Apple stock a little bit more difficult. When you see a $.50 spread it may deter you from trading this particular instrument. I don’t blame you. In the end, the broker will always be right with their price point versus the chart you have next to it. I did notice the metatrader chart price action moves a little bit quicker than the price at 24 option. This is definitely something to consider when trading any type of stock binary options.

Our trade was based on price action coming down to the lows of the day. Price had hit a low on Friday and was coming down to that same spot this morning. I wasn’t really looking at support and resistance lines so much as this price point was the low of the day. If price were to get through this low that would mean you would be breaking lows for the last eight months.

Usually price does not just break these lows immediately. This is why I took a call option going against the trend of this particular instrument. Remember, the overall trend on the stock market was up. This was a strong indicator of which direction to trade. You don’t necessarily want to trade against the trend when the markets open up super strong. Trend is your friend. Pretty wild how I called the low of the day without knowing it. Price is now up $10 from when I took this trade.

Apple Binary Option is a 30 minute expiry. What this means is you have up until 10 minutes left to get in the trade. This could be a little bit troublesome for some people. Keep in mind that these expiry’s only go for certain times of the day. They are not a 24/7 type of trading instrument.

The lows I traded with 10 minutes left worked out but not by much. Price action continued to the North Side after entry giving us some pain in the end. Price eventually moved up within the last minute or two in our favor, giving us a $.20 winner. I did see price go in favor by two dollars and go against by two dollars. This shows you the variance you can see on the Apple stock on the binary options market.

The image below shows the chart that I traded today on the Apple stock. You can see our entry with a little red arrow pointing up and our exit with a red arrow pointing down. Although the price points are close, there is a $.20 difference from the entry to the close which gave us the winning trade of the day.
Apple Binary Options

Going forward keep in mind that trading on the binary options market can be quite risky. I’m always looking for new instruments to trade that show nice price action. If you have been trading anything else besides the EURUSD, please let me know so I can follow up some more.
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Comments

  1. Enjoyed reading your article. I just recently started trading Apple myself. It’s a pleasant change from trading EURUSD.

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