Trade in Groups

Binary options are good for beginners that want to get their feet wet, without worrying too much about all the jargon used in trading stocks. With binary options you either win or lose – there is no in between. The basic concept is that you buy a contract, either in the buy or sell mode […]

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Binary options (see: “Understanding Fixed Return Options (FROs)” offer traders another way to make leveraged bets on equities. While the total number of stocks and indices on which FROs are available is still relatively small due to FROs only being available for a handful of months, I see several trade set-ups:
After hitting an intra-week low […]

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Binary options, also known as digital options or all-or-nothing options, are contracts which have only two possible outcomes - either they win, or they lose. Essentially, a binary option involves a fixed payout after the underlying stock meets or exceeds its predetermined threshold or strike price. Values of binary options payouts are determined […]

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A binary option is an all-or-nothing contract. The prefix “bi” denotes two possible outcomes for the investor. Other common names for binaries include fixed return options (FRO), all-or-nothing options and digital options for their on-off payment structure. Binary options are a new investment vehicle to hit the American Stock Exchange (AMEX). The contract calls for […]

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Another index to understand.
Luckily, this one is easier to understand than it sounds.
Fixed Return Options (FROs) were recently launched on AMEX. FROs are defined here, but there is one critical point to understand. Traditional options (puts or calls) rely on the underlying stock’s price when the market closes on the expiration date.
The settlement index for […]

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Fixed Return Options are “binary” otions with a per-contract fixed return amount of $100.00. Fixed Return Options are offered in the following two forms:

Finish High FRO
Finish Low FRO

A Finish High FRO is similar to a standard list call option in that an investor purchasing a Finish High FRO is bullish on the underlying security. […]

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Fixed Return Options (FROs) are a new type of exotic options, however don’t let ‘exotic’ scare you - it doesn’t mean FROs are complicated. In fact they’re really simple, they are just a bit different from standard put and call options.
FROs are binary options, meaning there are only 2 possible outcomes. They offer a fixed […]

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I am hoping to get my feet wet here with Fixed Return Options:

Anyone else trying them? TradeKing has a good whitepaper on them…

Sphere: Related Content

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I recently heard about a new product being offered on AMEX called the “FRO” or Fixed Return Options. Basically, these are binary options, or in other words there are 2 options at expiration. They offer a fixed return of $100 per contract. If you are in the money at expiration, you get $100. If you […]

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