NADEX

jackieo79 said:
The main reason for me to trade anything is to make money trading on my schedule (night, early am, or day time). I trade Nadex binaries - (mentioning nadex as not all binaries are created equally) as they do they allow me to make money trading on my schedule. In addition, they allow me the defined risk I like one obtains when trading options. I like the speed of movement, the advantage of intraday time decay, being able to go both long and short to strangle etc for news trades...as exhibited in multiple trades screenshots live trades etc.. posted recently. Whether it be In The Money nadex binaries for premium collection or OTM binaries for strangles or nadex spread for hedging futures/forex directional trades. I just want to keep it simple.

Regarding mispriced convexity, skews, equivalency, replication providing additional edges.. etc.. I will leave that to you guys. Not saying its not all valid etc... but I just trade what works. I will in no way challenge the more you use the math the more of an edge you can get and that it could help you with developing much more advanced strategies. But I personally prefer to just keep it simple. More concerned with the application and profitability than I am with the advanced math.

I don't just trade the dailies, I trade the intraday's, dailies, and sometimes the weeklies (mainly on thursday/friday).

I prefer not to bet but trade with defined entries and exits based on chart movement. ON nadex binaries i can exit many types of binaries you can't. I consider having to hold to expiration without a choice betting.
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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

drownpruf said:
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.
More...
 
jackieo79 said:
I prefer not to bet but trade with defined entries and exits based on chart movement. ON nadex binaries i can exit many types of binaries you can't. I consider having to hold to expiration without a choice betting.
More...
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:
2014-02-07_1431.png


Daily:
2014-02-07_1431.png


Weeklies:
2014-02-07_1430.png


jackieo79 said:
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
More...
 
sle said:
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?
More...

Good point(s).

They don't offer Monday's daily until Sunday night, IIRC.
 
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

sle said:
Betting and trading are the same things.
More...
 
I've been testing some daily strangle selling models on the sp using binaries with some success. Anyone else working on something similar?
 
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