I agree with some of what you're stating here... regarding edge loss; there should be a convenience premium to trading around the clock in a vertical. You can also trade a synthetic condor if you wish. I will look into their overnight mkts with respect to spread (widening?). I will compare the NADEX binary (ITM bull and OTM bear) to a strip of listed condors on Monday.
i trade the forex markets at night as they are the only one with intradays in the evening - spreads are normal there etc...either way i do them they make money - have fun on the demo- yes i do credit spread/condors etc.. with the binaries... if comparing to condors etc.. make sure to use futures options to compare the same options to the same underlying... though im sure you can do some sort of comparision with etf's not the exact same... but again that would be weeklies - not dailies and night time - etc.. i do strangles and premium collection and condors etc.. intraday only myself
Betting and trading are the same things. It would be interesting to see if far downside daily binaries reflect the regulatory pressures present in OTC products with exposures to daily gap (e.g var vs daily capped var). If they do, NADEX might be a great vehicle to sell that crash, since you really isolate daily gap (as opposed to trading weekly optyions). For example, 1 day expiration would be Monday close, right - what would be markets on 95% and 90% binaries on Nadex?
Note regarding your comparison of weeklies - the weeklies have wider strikes so obviously the price is much lower due to the expected range/pricing delta etc.. with only hours left till expiration...whatever you want to call it basically in short - its friday - you can look at dailies and intradays to get more strikes Intraday: Daily: Weeklies:
Monday Daily and weekly for non-fx start at 3 AM on monday... Contract specs links for reference to opening times strike widths etc... http://www.nadex.com/stock-indices/contracts.html http://www.nadex.com/spot-forex/fx-contracts.html http://www.nadex.com/trade-commodities/contracts.html
I understand I should be more clear. For sake of clarity of what I meant to say better written as... Don't gamble and hope it will expire > than or =/< a price... Use a target and close the trade before expiaratoin so a profitable trade does not becoming a losing one Basically a gambler/better/trader hoping on expiration it will still be some where without a plan to exit versus A professional/better/trader intentionally setting targets for exit before expiration due to the edge lost by holding to expiration and hoping it will still be there
Not sure if it redirects you but if not you can get a demo here: http://www.nadex.com/trading-overview/demo.html
I've been testing some daily strangle selling models on the sp using binaries with some success. Anyone else working on something similar?
The Section 1256 club is hard to get into: Nadex binary options donât seem to qualify. Nadex issues 1099Bs with 1256 tax breaks and we don't think they have a basis in doing so. Read our 6/20/14 blog "Tax treatment for Nadex binary options" http://tinyurl.com/ng8eqed.