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Binary Options Trading Monitor for July 13, 2010: SSO Put Buying Highlighted

|Includes: SPY, ProShares Ultra S&P 500 ETF (SSO)

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:

ProShares Ultra S&P 500 (NYSEARCA:SSO)- Bearish: With 3 trading days left in July expiration, investors were busy today buying over 20k July 35 puts in the SSO. The SSO ETF returns twice the daily return of the S&P 500. This cheap protection option cost the buyer around $0.40 on average. Shares of the SSO would need to fall 5% by Friday for the trade to yield a profit. With key earnings due out from GOOG, C, INTC, JPM and BAC this week, buying protection to lock in recent gains may not be such a bad idea. S&P 500 binary put options can be purchased on EZ Trader and most other leading binary options trading platforms.

Binary Options Weekly:

This week in the Binary Options Weekly we discuss how binary option traders can take advantage of patterned stock movement during the last few trading hours of traditional options expiration. We explore the “Pin Risk” phenomenon, highlight recent examples, and show you how to construct a high probability trade to exploit pinning situations for binary option gain.


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Binary Options Trading commentary/strategies and to receive your free subscription to the Binary Options Weekly, please visit us at www.DerivStrategies.com.




Disclosure: No Positions