99.75/.25 strategy

#1

I’ve been seeing some offers on binaries at night with a buy for 99.75 and a sell for .25. Is this actually a viable strategy? How does that even work. It’s usually when the strike is right ATM. Thanks!

#2

Just to enter 1 contract is .90 cents to exit is .90 cents, if you make .25 cents on a trade, you’ll end up with -$1.55 = +$0.25 - $1.80.

There’s no Strategy that can make money at that point.

#3

I think it’s an inverted DOTM with a set PT. Just wondering if that even works.

#4

Trying to enter at those prices won’t work due to fees unless doing a lot…

It’s someone trying to do a low risk entry ie buy at .25 becomes a sell at.25 to see if a ****er takes it

#5

For those of you new to trading “****er” is trading jargon. :slight_smile:

#6

AHAHAHAHAHAHHAHAHAH!!! "*er" it’s like a curse word for trading. Good One!!! I want to get 100 TS per trade.

#7

I user the word suc ker lol I guess forum blocked it lol

#8

Sorry if its an old thread but I realized why you see 99.75/0.25 so often. People aren’t looking to enter trades at those prices, they are looking to exit at those prices. For example, if someone bought a binary option and they are way in the money, they want to sell for 99.75 now just to settle and take pretty much their full profit. If I were going to do that I’d probably sell for 97 or buy for 3. Even if there’s not much time left before expiration, it could be worth it to give up a few dollars profit just to be done with it.