Trading Binary Options: Strategies and Tactics

CHAPTER 7

General Binary Option Trading Strategies

This chapter provides a review and sampling of basic binary option trading strategies that combines and builds upon the fundamental, technical, and sentiment analyses already discussed. Try to compare the trading strategies reviewed with your own approach to market conditions described. As always, once an underlying market is selected, the challenge is to determine the correct trading strategy to apply. This chapter will help you meet that challenge.

Core Strategies

There are many variations, but basically there are five major binary option trading strategies:

1. In-the-money (ITM)

2. Deep-in-the-money (DITM)

3. At-the-money (ATM)

4. Out-of-the-money (OTM)

5. Deep-out-of-the-money (DOOM)