The way that the Classic Options at IQ Options work is different from that of binary options at IQ Option, in particular because of the assets.
While in binary options we use mostly graphical analysis strategies, in the Classic Options at IQ Option we have to use a different type of strategies.
For this reason, the strategies for Classic Options at IQ Option should be adapted to the type of asset.
Tips from our Professional Trader: 6 reasons to have 2 accounts
Do you know that you should work with more than 1 broker?
Check the 6 reasons why you should have account with at least 2 brokers:
- Each platform has its differences. If you try different platforms you may find those more suitable to your trading style.
- Each broker has his own payouts that keep changing during the day. If you want to open a trade and one offers 60% and the other 80%, you will choose the one with best payout, no?
- Sometimes the brokers close some assets, if you have just one account and you want to trade on that asset and it is closed, you will LOSE that trade, no?
- If there is an issue with your Broker’s platform, or they are updating it you’re not able to trade, unless you have another account with other broker.
- Deposits and withdraws. Brokers keep changing the deposit and withdraw methods, imagine you need cash fast and your withdraw system is closed at that moment on your broker, what do you do?
- Each platform has its owns indicators and trading tools, imagine you found a new stratey and it does not work on your broker because it uses an indicator that your broker does not offer.
Below you can find our main trader suggestions on brokers:
Strategies for Classic Options at IQ Option – Information About the Assets
The Classic Options at IQ Option use assets that are called underlying assets, in essence, it is an asset on which there are derivatives (futures or options).
In practice, these assets are based on the stocks of the 500 largest companies listed on the New York Stock Exchange, the famous S&P 500.
Although we can use indicators to analyze an active, my opinion is that the strategies for Classic Options at IQ Option become more effective if you use fundamental analysis factors and not the typical graphical analysis we use in assets such as Forex.
Unlike the example of Forex assets that are used in binary options, the assets related to shares of companies are very dependent on the results of the companies, the products they launch, sales reports, the competition, who the CEO is, etc.
In this sense, the logic is that the strategies for Classic Options at IQ Option should be based on this information, this news, which as a rule are fundamental and non-analytical strategies.
At the end of the article view some real trades made with the strategies for classic options that I explain.
Strategies for Classic Options at IQ Option – News-Based Trading
There are several ways to trade using news-based strategies for Classic Options at IQ Option.
1 – Enter before the News – Based on the opinions of analysts, on what the company has been doing, the results that the company has been having:
ADVANTAGES: We enter the market before so that the price is in our favor, then the earning potential in terms of percentage is much higher. It is normal to have returns of 200%, 300% or more in a single trade (at the end of the article view two examples of two entries that I made based on this situation).
DISADVANTAGES: We are entering with more risk because this entry is based on rumors or past information on the company which may not reflect the current reality, and by entering the trade counting on a future result we may be completely wrong and fail in the trade. In this situation, it is normal to lose 100% of the amount invested in the trade.
This is probably the most used of the various available strategies for Classic Options at IQ Options. Trusting the predictions and acting in the direction that they point.
2 – Enter after News – Wait for the news to be announced to be sure of the results and how the market will react and enter with greater certainty of how the asset will evolve.
ADVANTAGES: We enter the trade sure that the results were good or bad for the company, so it is easier to trade in the direction that the market has already taken. In case of a loss, typically it is small.
DISADVANTAGES: When entering after the initial reaction of the market we have already lost earning potential, and the potential for earnings above 100% is much smaller.
Strategies for Classic Options at IQ Option – Straddle
This is one of the strategies that I like the most in the various available strategies for Classic Options at IQ Options. However beware; in order for this strategy to work, we have to wait for the asset to move. We should enter before it moves and the broker’s commissions can’t be very high, otherwise we won’t have a profit.
This type of strategy implies that we enter with both a Call and a Put on the same asset, at the same time. The logic in using this type of trade is when we know that something important will happen that will make the price of the asset move a lot. Be it the announcement of important results, an acquisition of another company or merger, a change in the CEO, or the launch of a new important product. In practice, between our entry and the expiration of the option, an event that causes the volatility in the asset should occur.
When we predict that there will be a significant price fluctuation but we don’t know if it will go up or down, it may make sense to use this kind of strategy for Classic Options at IQ Option. Why? Because if the price is volatile, we know that on one of the trades we will have a 100% loss, but on the other trade we will make a profit and that profit will be above 100%, therefore between our losses and gains we are certain to have a profit.
Let’s imagine the following: I buy a Call Option on Nike and invest $50. At the same time, I invest another $50 by buying a Put Option. I wait for the event that I expect to cause volatility in the price. I will have a profit of for example 150%, which means I earn $125 on one of the options and the most that I lose on the other option is $50. So I invest $50 + $50 = $100 and have a gain of $125. The total profit is $25.
This strategy also works in assets with good volatility in longer-term options such as 2 weeks. Since we can close a position when we want, we use that to our advantage. During these two weeks, the price will have a good variation and so we wait for one of the positions (Call or Put) to have again above 100% and we close the trade. Then the other position will close with a maximum loss of 100%. We will always have a profit in the difference of the trade with gains (more than 100%) and the trade with losses (the 100% maximum, but we may still recover some of the investment in the days until expiration).
PROMOTION | Strategies for Classic Options at IQ Option
Receive reviews and signs for Classic Options at IQ Option done by me. I use several strategies for Classic Options at IQ Option. My trades are based on information from news, combined with various strategies used in stock options. At this time they are free, but it is an EXCLUSIVE offer for our IQ Option Affiliates. Contact us for more information!
– What is an affiliate?
An affiliate is someone who opened the account at the broker using a link from an affiliate site like ours. When you open the account through us, the broker shares a small part of the profits from trades.
For the client (you), it makes no difference whether you register through us or directly with the broker. The account is the same; the profits are the same; and the rules are the same.
There are only advantages: Our support, this and other strategies, signals for free or at lower prices, etc.
– Why is the strategy exclusively for affiliates?
Because it was a lot of work to design, because the blog incurs costs, and because since you don’t pay anything to be an affiliate, it’s not too much to ask. And above all, because it is fair, if you don’t work for free, it is also fair that we receive compensation for our work. Even more because you are not the one paying; the broker pays us.
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Strategies for Classic Options at IQ Option – Strangle
This strategy is another one that is part of the strategies for Classic Options at IQ Option where we open two positions; a Call and a Put on the same asset. In practice, Strangle and Straddle are similar.
The main difference between them has to do with the Strike Price. While the straddle strategy covered above, bought both positions at the same Strike Price, that is, at the same price, here we don’t use the same price. Here we buy at different prices so that our investment is smaller.
The Call option is purchased at a strike price above the current price so that it is less expensive, and the Put option is purchased at a price below the current price so that it is also less expensive.
For this strategy to work, the price has to move right until the end of the expiration of both options (which will expire at the same time).
Watch the video about the STRANGLE, a strategy for Classic Options at IQ Option
Strategies for Classic Options at IQ Option – What tools are used?
As I explained above, most of the strategies for Classic Options at IQ Option are based on fundamental strategies.
Nowadays, the internet provides all the information we need quickly and effectively, we just have to know how to find it.
There are several known sites with lots of information about the assets of the companies that are part of the Classic Options at IQ Option. Sites like Yahoo Finance, Bloomberg, Reuters, Seeking Alpha, Netdania, etc, are part of the list where we will be able to find important information. Investment bank or Fund Management sites (UBS, BNP, DB, JP Morgan, Pictet) are other sources of important information to use the strategies for Classic Options at IQ Option.
However, the announcements of results and reports provided by the companies themselves are the best sources of information.