Holiday Jobless Claims: Is There A Binary Way To Play?

The next Jobless Claims report will be out Thursday afternoon. Jobless Claims are an indicator of the health of the labor market, which, in turn, impacts the overall economy. A stronger labor market usually correlates to a stronger economy – more work implies more money to spend, and vice versa.

Binary options might offer an interesting option with relatively low collateral for individual investors looking to capitalize from the event.

Related Link: Hedge Funds Are Buying Gold, But How Can 'Average Joe' Capitalize?

What Are Binary Options?

Investing via binary options is just that: Playing a binary event. “Binary options are limited risk contracts based on a simple yes/no market proposition like will the markets go up by the end of the trading week,” binary options trading site Nadex explained.

How To Trade Jobless Claims With Binary Options

Via binary options, investors can put money down on the results they expect, with limited risk.

A standard Jobless Claims Binary Option may look something like: Jobless Claims >= 395000

For investors who believe the new jobless claims figure will be equal to or larger than 395,000, buying this Binary Option may be the way to go.

For those who think the new jobless claims number will be smaller than 395,000, Selling this Binary Option could be better.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.