New Jersey Traders

Yea that makes sense, it's just that to have any alpha when you're getting filled x% past theoretical price, you need to have alpha in excess of x% plus fees. If this is true, then you'd be best trading the underlying asset directly (because you have so much edge there).
 
One way of looking at binaries is to look for undervalued contracts, based on your analysis of probability.
Say your research puts the odds of a 5 point move in 2 hours at 70% . The binary, if at the money, will be priced, say, 45-55. The option to you is undervalued.
 
Ik im a bit late to the party... currently live on the shore, background in finance and moderate day trading experience. I trade volatility using straddles and synthetic positions.
 
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