If you went short DOW today with some nice puts, congratulations! This is what makes binary options trading extremely nice – we can trade the momentum and fears surrounding the debt crisis and S&P downgrade. Where others who are stuck in long positions are inevitably going to get hurt on these massive news plays.
So with that said, the DOW ended up 630 points down today and we need to be watching for continued momentum as we move along through the week. All three of the major U.S. stock indexes dropped between 5-7%. With this having been the worst day in the stock market in terms of a significant drop since 2008 you need to keep your eyes on it!
Remember fear is the name of the game on Wall Street and people are causing mass panic over the downgrade, so play off of it and make some money.