Late August Volatility Trades with Binary Options

Late August Volatility Trades with Binary Options
Late August Volatility Trades with Binary Options
Late August Volatility Trades with Binary Options Getty Images

It’s late August in the market, which is usually a time for light volume, low volatility, and light trading as summer vacation season is in full swing. Yesterday, we had one of the lowest volume days of the year so far. For the last 6 weeks the market has been in one of the tightest trading ranges it has seen over the last 50 years. The one things that could make this week different from most final weeks in August is the Jobs report due Friday.

As most traders already know, The jobs report could easily provide a volatility spike in the markets in either direction if it differs from the expected numbers. With an interest rate rise looming in the future from Janet Yellen, the jobs number could be an important indicator that the Fed will be looking at when determining when to institute the next rate increase.

Last Friday saw dramatic volatility, especially compared to most Fridays in the summer. This Friday could be a wild ride as well, or we could see a calm market if the Jobs number comes in as expected and traders decide they are able to leave their desks early for the long weekend.

One way to trade for volatility over a specific week is to take advantage of the binary options offered on the Nadex Exchange. By providing defined risk, with risk vs. reward scenarios that offer a multitude of options that fit most methodologies, weekly binary options are something to consider the next time you’re scanning the market for a profitable set-up.

Here we see a chart of the indicative index, which is based off the CME E-mini S&P 500 Index Futures for the month of September. This chart is as of about 4:15 pm ET Monday evening, leaving almost exactly 4 days until expiration on Friday afternoon.

Late August Volatility Trades with Binary Options

Whether you’re bullish, bearish, or market neutral, there are many trading opportunities in just this one index. Depending on your market bias and volatility expectation, Nadex binary options should be considered the next time you’re looking for a defined risk trade. Nadex offers binary options on many different indices, commodities, and currencies, all of which could be moving with force come Friday morning.

If you want to see what kind of opportunities Nadex provides you can open a demo account and they will provide you with $25K in practice funds to use. Friday should be an exciting morning in the market as traders digest the jobs number and how it will drive the Fed’s upcoming rate decisions. This is a great time to try out the Nadex platform and see if it can help you become a more profitable trader.

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