With the Facebook IPO coming soon enough, many people are considering whether or not they should invest. While some investors will opt for the traditional strategy of purchasing stock at a later date, others are considering a different approach – such as binary options.
In short, a binary option is a type of option where the payoff is a fixed amount or nothing at all. There are two primary types of binary options:
- Asset or nothing binary option
- Cash or nothing binary option
Rather than discuss the basic of binary options, you can learn more by reading these three articles:
Facebook has decided to go public sometime in the next few weeks. With this, investors are beginning to consider how binary options can apply to this IPO. Of course, affiliates of binary option programs can also take advantage of the hype by promoting programs including: 24.option.com, OptionsClick, RushBucks, and Anyoption.
Although the amount of shares and opening price has yet to be finalized (this is coming soon), traders can still hedge the market value at the closing of day one with the ability to earn a profit of up to 300 percent.
As one of the most anticipated IPOs ever, binary options traders are beginning to gear up and plan out their next move.
Anyoption, for example, is finding that this IPO is unlike any other. A company spokesman said:
“During 4 years of offering thousands of binary options on more than 100 markets, we never experienced so much demand and interest. It seems that any person over 18 on this globe wants to be part of this IPO. Most of them has no chance to purchase shares from the IPO allocation, but they still want to benefit from the possible upside, especially in the first day.”
Customers around the globe have several “call” and “put” options for predicting the valuation of Facebook stock. With Anyoption, a trader can receive a return of up to $400 by placing a $100 position that the market value of Facebook will be at or exceeding $132 billion at the close of the first trading day.
There is no denying the popularity surrounding binary options and the Facebook IPO. However, this type of trading can be applied to any IPO – even those that are not as large as Facebook.