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Binary Options Trading Monitor for July 7, 2010 (GE, VIX)

|Includes: General Electric (GE)

The Binary Options Trading Monitor highlights traditional options trading of the underlying assets currently available on the leading binary options trading platforms. With a focus on short-term activity, binary options traders can use this intelligence to gauge stock sentiment and help assess potential stock movement in the coming weeks.

Notable Options Trading:

General Electric Company (NYSE:GE): Bullish investors purchased over 10k July 15 calls in GE this morning, likely positioning for upside in the name heading into earnings. The average price paid was $0.10. While GE is scheduled to report 2Q earnings next week, July 16th before the market open, the call buyers possibly anticipating a favorable announcement would probably have to consider (if they haven’t already) flipping out of the calls purchased earlier in the day as a near 4% rally in shares has those same calls trading at $0.21, a 100%+ 1-day gain. I guess that’s another way to generate binary option like returns! GE binary options are available on the OptionBit platform.


CBOE Volatility Index (VIX): A strong 3% market rally pushed spot VIX down 9.5% to 26.84 today. The move lower spurred some investors to purchase near-term puts in the VIX, likely anticipating further declines in the volatility index throughout the remainder of the Summer. The July 27.5 puts and the August 25 puts were the two strikes of most interest to put buyers. VIX binary options can be traded on the Anyoption platform.


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Disclosure: No Positions