The Crude Oil Inventory Report is due out this morning.  As I wrote earlier this morning, I anticipated an 80 tick movement in Crude.  Crude was trading right around the $52.70 price range.  Eighty ticks up from this area would be $53.50.  Eighty ticks down from this area would be $51.90.

Trading the Crude Oil Inventory Report Using Binary Options

The cheapest OTM binary options were:

  • Expiration > $53.30 at 2:30 pm EDT $18 per contract
  • Expiration > $53.10 at 11am EDT $24.50 per contract
  • Expiration <= $52.10 at 11 am EDT $19 per contract
  • Expiration <= $52 at 2:30 pm EDT $24.50 per contract

Crude Oil Inventory Report Results

Price at 11am EDT expiration was around $51.80 so the $52.10 binary expired with full profit ($100 per contract).  Have to wait and see with the $52 binary expiration unless you put in a profit target (current price is at $38.50 for the 2:30 pm expiration resulting in a profit of $61.50 per contract if profit was taken right now).

Trading the Crude Oil Report, with all the straddles listed above, you still made money.

  • 11am EDT Payout $100 minus $24.50 paid for $53.10 = $74 profit
  • 2:30 EDT Option Price is currently trading at $38.50 resulting in a profit of $61.50 for the $52 Binary Option
    • Minus Risk Paid for the $53.30 Binary Option at $18
    • Profit = $43.50

And exchange fees is only $1.80 per contract (up to nine contracts and then it is locked in at $9 per side)