Each month, the WASDE (World Agricultural Supply and Demand Estimates) Report is released. This report generates quite a bit of movement, but the direction is unknown. This is the time to place a strangle on binary options.
A strangle strategy is entered when a trader buys an upper binary contract and sells a lower binary contract. Of course, more than one contract can be done at a time. However, make sure that the contracts are equal on each side of the trade.
The risk on the four bought contracts was $47. When you subtract the risk and the $61 loss from the $240 settlement payout, this trade profited $132. After the fees of $10.80 are subtracted, it is evident how the trader profited $121.20 in a short time.
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