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Day options
If you are day trading and looking for the highest return investments one often overlooked alternative is the binary options trade. In its simplest form the binary option pays out typically at least sixty percent return on investment. Given the holding period on these trades is less than an hour the equivalent annual yield on such a trade is not even calculable. There are risks associated with these investment positions, such as the possibility of an entire loss of capital on a trade - but then again what stock doesn't pose that risk these days? Day options in the Binary Option Market Makes for One of the Highest Return Investments
The only other possible way to make this kind of staggering percentage gain on a single security while day trading would be to hold some at the money or just out of the money options and have a sudden spike in stock price produce a windfall. Given the extremely infrequent nature of sudden spikes and dips in price option trading can not be relied upon to produce consistent results. If one is looking for the highest return investments then consistency of results must be taken into consideration. This is an area where the binaries really do shine. Short Day Trading Holding Period Gives Continuous Feedback on Trade Results
Because binaries have a very short holding period, usually less than an hour, definitely less than a day, there is a finite and short waiting period to determine the outcome of the trade. A trader will know within an hour whether or not he or she will make 60-70% on a trade. Having timely, consistent results is a major factor in what makes day trading binary options among the highest return investments around.
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