Following the aftershock caused by Facebook’s IPO, one could wonder if it is profitable to trade Facebook in the binary options arena.
We know many investors disagreed with the stock valuation Facebook offered to the public, arguing that the price set and the offered quantity do not reflect at all the real situation of the company.
Since then, the asset has trended lower; a 30% decline in value over the first two weeks of trading. However, some analysts are advising to buy during this decline as they believe the stock will eventually stabilize itself at a higher level.
When we can volatility attributed to an asset, it should peek the binary options trader’s interest. Binary options trading does not require operate high trends in order to profit. Indeed, it is enough to invest on a position that will move in any direction to see a profit. Volatility can actually make an asset more attractive to a trader since it is primarily moving in line with the word on the street. This makes it an easier predictor.
With such highly talked about asset, a trader can often profit by simply following the peripheral events regarding Facebook and it’s coverage in the news. If the news focuses on its pending shareholder lawsuits for example, it becomes easier to predict the stocks downward trend. If the news ignores, or speaks positively about Facebook, it will be easier to predict its upward trend. Paying attention to the news of such a highly covered asset such as Facebook can and should be very profitable for a binary options trader.
To summarize, the more information the binary options trader has, and on Facebook there is a large quantity of it available, the better trading will be.
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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments.