Trading Nasdaq at open using binary options to limit risk, just in case it went against me.
Trading Nasdaq at Open Using Binary Options to Limit Risk
This morning, the Nasdaq went up to where I anticipated earlier, 6475, which was the ATR on the 180 minute chart. Since I knew the trade would more than likely play out at the US opening, I opted to use the binary options to limit risk on a short position.
In this case, I shorted the Out-of-the-Money Nasdaq strike at 6464 for a 10 am expiration (two hour binary). About 13 minute prior to expiration my target at $15 had not been filled and the ADX was generating a magenta peak with selling divergence on the lows. Therefore, I exited at $25.25. A profit of $42.50 was achieved while only risking $32.25 per contract.