I cannot actually. Have never traded them. Had a friend that used to trade them so only know about them from what he tried to impart on me.
But as I understand it:
(By the way I’m talking about PROPER Options here and not these money fleecing Binary Option scam things)
You would buy (not sure if buy or sell in this case???) an Option. The Option has a strike price (essentially your TP). And is limited in time. But you only pay for the price of the Option. You’re therefore not exposed to the risk (like you and I in normal trading) of being in a position that can go against you. In other words: if price reaches your TP (the Option’s strike price) within the Option’s expiry date then you TP (make money). If not: the Option simply expires “out of the money”. And I believe that what I’ve just described is called a “Vanilla Option” i.e. just a basic Option with a set price, strike price, and expiry period. I mention this because there’s many flavors of Options (which is what put me off i.e. WAY above my intellect and pay grade). I THINK the longer the expiry date the more the cost of the Option.
Who knows. For something like this??? Could be a no brainer. Maybe there’s an Options trader around these parts that would chime in and help us out here.
Matter of fact: let’s throw it out there and ask i.e. keen to know myself (if I’m talking sh*t above or not).
Have started a thread to ask re: the above.
Will point them here if any responses.
Another thought: I do seem to remember also that it could be that because you’re paying for the price of the Option and there is no leverage involved: I THINK you could take a sort of HUGE position type of thing. In other words: a sort of “bet the farm” Option without actually betting the farm if that makes sense.
In just looking at that chart: probably a safe bet to take an Option with an expiry date of a year or something like that. So far as I can tell every few months it tanks so it’s bound to happen within a year???