Over the past couple of months, the Nasdaq 100 Index rose roughly 11 percent. The question now is, where will it go next? Will it continue to surge? Or, will it fall like it did in late-August and late-September? And, is there a way to invest in performance over the short term without being exposed to high risks and collateral?
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.
Trading The Nasdaq 100
There is a way to capitalize from the moves of the Nasdaq 100 Index (or its futures) without actually investing in the index itself. By purchasing binary options, investors can try something as simple as “will the index trade above 4,800 points this week?”
For investors thinking the answer is yes, buying this binary option could make sense. For those thinking the index will not surpass 4,800 points, selling this binary option is a reasonable strategy.
A Look At The Components
To know which stocks you are actually playing, check out a full list of the Nasdaq 100’s components here.
Some popular stocks included in this index are:
- Yahoo! Inc. YHOO
- QUALCOMM, Inc. QCOM
- Microsoft Corporation MSFT
- Netflix, Inc. NFLX
- Apple Inc. AAPL
- Sirius XM Holdings Inc. SIRI
- American Airlines Group Inc AAL
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
Image Credit: Public Domain© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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