Nadex continues to amaze the people who are eager to trade binary options. They set the standard by being the only retail focused regulated binary exchange in the United States covering indices, Forex and commodity binary options. They have full transparency in pricing while protecting the anonymity of the trader from the other side. In September of this year, Nadex expanded internationally opening to traders residing in Canada, Mexico and the US Territories.
On October 20, 2014, they announced plans for 20-minute Binary Option trading. Shorter term binary contracts are in high demand and this most recent move to add on shorter term binary contracts will most likely result in more and more binary traders switching over to Nadex as their preferred place to trade binaries.
Until now, Nadex binary options have had hourly expiration times. (They have been open for two hours previous to expiration but in many cases having expirations each hour.) Beginning November 3, 2014, the US Indices markets will offer contracts expiring every 20 minutes from 10:00 AM to 4:00 PM ET. Nadex has submitted its intent to the CFTC to add new intraday 20-minute binary contracts to its current listing of US 500 ES, US Tech 100 NQ, SmallCap 2000 TF and Wall Street 30 YM. They aren’t removing any contracts; simply adding more. The strike widths will be the tightest ever offered!
What does that mean to you as a binary option trader? It means that there will be a lot more trading opportunities! If you are a lunchtime trader, that is when you will see the tightest strike prices.
Let’s look at what each of these markets will have to offer.
US 500 (underlying E-mini S&P 500)
Morning and Afternoon Expiration times: 10:00AM, 10:20AM, 10:40AM, 11:00AM, 11:20AM, 2:40PM, 3:00PM, 3:20PM, 3:40PM, 4:00PM ET CLOSE. For these expiration times, the interval width between each strike level will be one point wide and there will be nine strike levels listed for each 20-minute binary contract series.
Lunch Time Expiration times: 11:40AM, 12:00PM, 12:20PM, 12:40PM, 1:00PM, 1:20PM, 1:40PM, 2:00PM, 2:20PM ET CLOSE. For these expiration times, the interval width between each strike level will be 0.7 points wide and again, there will be nine strike levels listed.
US SMALLCAP 2000 (underlying Russell 2000 Mini)
Morning and Afternoon Expiration times: 10:00AM, 10:20AM, 10:40AM, 11:00AM, 11:20AM, 2:40PM, 3:00PM, 3:20PM, 3:40PM, 4:00PM ET CLOSE. For these expiration times, the interval width between each strike level will be one point wide and there will be nine strike levels listed for each 20-minute binary contract series.
Lunch Time Expiration times: 11:40AM, 12:00PM, 12:20PM, 12:40PM, 1:00PM, 1:20PM, 1:40PM, 2:00PM, 2:20PM ET CLOSE. For these expiration times, the interval width between each strike level will be 0.7 points wide and again, there will be nine strike levels listed.
US TECH 100 (underlying E-mini NASDAQ 100)
Morning and Afternoon Expiration times: 10:00AM, 10:20AM, 10:40AM, 11:00AM, 11:20AM, 2:40PM, 3:00PM, 3:20PM, 3:40PM, 4:00PM ET CLOSE. For these expiration times, the interval width between each strike level will be three points wide and there will be nine strike levels listed for each 20-minute binary contract series.
Lunch Time Expiration times: 11:40AM, 12:00PM, 12:20PM, 12:40PM, 1:00PM, 1:20PM, 1:40PM, 2:00PM, 2:20PM ET CLOSE. For these expiration times, the interval width between each strike level will be two points wide with nine strike levels listed.
WALL STREET 30 (underlying E-mini Dow)
Morning and Afternoon Expiration times: 10:00AM, 10:20AM, 10:40AM, 11:00AM, 11:20AM, 2:40PM, 3:00PM, 3:20PM, 3:40PM, 4:00PM ET CLOSE. For these expiration times, the interval width between each strike level will be nine points wide. There will be nine strike levels generated: one considered ATM (at the money) with four above and four below that level. This is true for all of these markets.
Lunch Time Expiration times: 11:40AM, 12:00PM, 12:20PM, 12:40PM, 1:00PM, 1:20PM, 1:40PM, 2:00PM, 2:20PM ET CLOSE. For these expiration times, the interval width between each strike level will be seven points wide. These contracts will also have nine strike levels listed.
You can see from the above listed information, there are new expirations and strike levels that will be available beginning November 3, 2014. This opens up many opportunities for cutting-edge strategies to use when trading. If you would like to learn how to incorporate these strategies into your trading, go to www.apexinvesting.com. Apex Investing Institute offers free education, and free access to the Nadex Binary and Spread Scanner Analyzers. Member traders are invited to trade in the chat rooms, take advantage of trade signal services, have key indicators and access the Apex Forum. The forum content is updated daily and includes over 8000 members. In a supportive learning community of seasoned as well as up and coming traders, traders of all levels learn how to trade Nadex binaries and spreads in depth, as well as futures, forex, stock and options, and gain an edge for successful trading overall.
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