Nadex Trade of The Day- Trading the S&P 500 With 20 Minute Binaries

TradingPub Admin | February 12, 2015

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By Joseph Banegas

Binary Trade Group

With the recent volatility in the market place, trading the US Indices with Nadex  20-minute binary options requires a strong opinion about the direction of the market and the dexterity to take profits quickly or exit if a trade is moving against you.

Nadex offers 20-minute binary options for trading futures on four of the major US Indices:

  • US 500 (S&P 500)
  • Wall St. 30 (Dow 30)
  • US Tech 100 (NASDAQ)
  • US SmallCap 2,000 (Russell 2k)

In today's trade, a 20-minute binary option was placed on the US 500 index for the time period of 11:40am-12:00pm EST.

As the markets were ranging, especially the US 500 (S&P 500 Futures), I decided to look for an opportunity with the 20 minutes binaries. The /ES was brought in from 30m to 15m, 5min, and finally to 1 min.charts on my ThinkorSwim platform. The chart showed many signs of a decent uptrend.

  • MACD positive and rising
  • More advances than declines
  • Volume speed steady in an uptrend
  • S&P 500 Futures (ES trending sideways)

Let's take a look at this trade on my thinkorswim (TOS) platform: (February 12, 2015):

20_Min_ES_US_500 (1)
20 Minute Binary Options Trading Chart

With the decision made to BUY, the next step was to go to NADEX and place the trade. A 20-minute Binary was selected with a 12:00PM expiration at 11:41am.
Trade Details:

Contract: US 500 >2073.25 (12PM)

Expiration: Thu Feb 12 12:00:00 EST 2015

Direction: BUY

Quantity: 10

Price: $86.50

10 Contracts were bought, with a maximum risk of $865 and a maximum reward of $135. This is normally a little bit high for my personal taste, but the strike price of 2073.25 was so deep into the money that I felt justified in letting these contracts ride until expiration.

The market moved straight up and never threatened the strike price of 2073.25 before expiring  in the money at 2077.75 at 12noon.

The contracts settled in the money at 12:00pm EST, yielding a gross profit of $135, less $18.00 in exchange fees for a net profit of $117.00.

02 12 2015_ES20Min
02.12.15 20 Min Binary Options Chart

About Joseph Banegas:
Joseph Banegas is an official trader and educator with The Binary Group (BTG). He trades mainly Binary Options using the NADEX exchange. Additionally, he makes LIVE Calls on opportunities for members of the BTG private Facebook group on a daily basis, along with other BTG instructors.   BTG provides new and experienced traders with daily training sessions for trading Nadex Binary, and has helped so many in honing their trading skills.

More information about the Binary Trade Group visit their website. 

Curious about Nadex? Open a Free, 2-Week Nadex Demo Account!

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Sean Jantz, Founder of the BTG Explains their Unique Approach for Trading Nadex in the video below: 


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