Today’s binary option trade was based around a news event that occurred at 8:30 this morning. Once a month, on the first Friday the nonfarm payroll report comes out for the US market. No matter what you are trading, whether it’s binary, stocks, futures, or any asset you should be aware of this news event and to be very careful when trading around it. As a binary trader, we are looking to trade in about an hour after the news has been digested into the market.
Today, the news came out and it wasn’t anything spectacular. We noticed a slight move down and then a solid move up to the resistance line on the EURUSD. Although the price was moving in the direction to the North Side we did see a lot of resistance in including resistance on some of the previous hours candlesticks. This allowed us to take a put option to the South side, giving us a five PIP winner as seen in the video below.
We look for this extended move after the initial thrust after news event. The reason why we don’t trade around the news event is because the news allows the markets to go into new territories. There’s nothing like being on the wrong side of the trade when the release occurs. This trade allowed us to drop-down that hit the original entry. The image below shows how the price completely dropped for a longer put option or even a spot trade giving the trader a big winner altogether.
If you have any questions or comments please leave them in the comments section below would be more than happy to help you. Until next time have a great trading day.