Trading Binary Put Options
A binary PUT option, also known as a digital PUT option, is a trading strategy used by traders when they
believe that the price of their chosen asset will fall below the strike price upon the expiration date of
the option they chose. This option is the opposite strategy to that of a CALL option.
Typically a binary PUT option is used as a strategy in bearish markets, when market prices are
falling and consumers are pessimistic about market performance. However, even when times are positive, bullish
markets can still experience falling prices and therefore a digital PUT option can be applied in this
instance as well.
Binary options work on short-term projections so it important for traders to keep this short
timeframe in mind. If the asset is showing signs of a downward movement, a binary PUT option is a solid
strategy in executing your trading strategy.
For example, think of a technology stock whose competitor has just launched a new version of its
high-selling portable computer. Consequently, the stock price begins to fall and it would make sense for
the trader in this case to place a digital PUT option on the asset as it is likely to
continue to fall in price.
All that a trader needs to do in order to place a binary PUT option on the GlobalOption platform is to
select PUT on the trading page of the site and wait to see if his projection was correct once the
expiration time passes.
The GlobalOption platform provides users with the ability to maximize their profits even in a
bearish market. Binary PUT options provide a solid strategy for achieving significant financial gains.