What do you know about Straddle and Pinocchio Strategies? (Enhance your knowledge, Follow us https://www.facebook.com/BinaryOpt…

What do you know about Straddle and Pinocchio Strategies?

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The straddle strategy is used along with the news strategy. For this strategy, straddle trades should be executed before that important announcement we mentioned in the last section.
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That asset’s value could increase for a small amount of time after the announcement is made, but you will need to buy an option that estimates that the price will lower once again. Once that price begins to drop, you’ll need to call a different option with the expectation that the price will go up again. Essentially, you are using trend swings to make money regardless of the price changes of the options you choose.

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Pinocchio Strategy is quite similar to the last, as it requires a trader to bet against a trend. If an asset is experiencing a price-rising trend, then the trader should place an option with the expectation that the price will fall. With that idea in mind, the trader should choose an option with the expectation of that asset’s price to go up if it is experiencing a declining trend. Look at your candlestick chart and identify if the candle is light or dark, meaning that the market is bearing or bullish at the time. If the wick is pointing down, place your call option. If the wick points up, place a put option instead.

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