when purchasing an option. In exchange for this risk, a covered call strategy provides limited downside protection in the form of premium received when selling the call option. The next candle closes below our 100 Fibonacci level but does NOT touch level 127, which means it closed below the low of our current sequence. Call Option, this is more like a deposit made for a future date. This strategy also exploit the full potential of value charts. Most serious investors have heard about different types of options trading strategies. Strategy phase of the market is the simplest tactic, which in general shows some tricks of the trade in the futures exchange markets. If youve studied and understood my previous posts about the fundamentals of binary option FX trading and binary options indicators, you are now ready to trade for real.
This is because usually level 127 represents a consolidation level to draw buyers/sellers into the trend to get more liquidity and the price usually carries on in the direction of the trend within the next 3 candles. Moreover, this takes your options trade a step higher in terms of sophistication. It is a rather straightforward strategy. It is important to remember that the accumulation (localization zone on the resistance level of the uptrend) and the distribution is only possible in the final stages of a trading range. According to most traders, the most simple and intuitive strategy are often find themselves winning.
There are some advantages to trading options. If the price of the underlying increases and is above the put's strike price at maturity, the option expires worthless and the trader loses the premium but still has the benefit of the increased underlying price. At the most, you will book a loss of 500.