This is going to be one of the most important financial trading weeks of the year, given that it is likely to be the first interest-rate hike in the US in several years. It should be remembered that most of the price movement expected from this decision has already been factored into equities, commodities, indices and stocks. However, as a binary option trader all that’s needed is a slight movement in price to maximise profitability. The US has taken center stage in the global arena, and all eyes are on the Fed’s decision moving forward. The Bank of Russia is deeply concerned about the volatility that will accompany the Fed decision. Already the interest-rate in Russia is 11%, and the Russian ruble has been languishing as a result of capital flight, punitive sanctions on US dollar strength. The Fed decision is likely to place additional stress on the Russian ruble, and many other EM currencies, but these are only a handful of the many tradable opportunities available to you this week.
Let’s take look at the most profitable binary options trades for currencies, commodities, indices and stocks. This week I’m going to list several opportunities since they are all favorable options for you to trade.
1 – CURRENCIES: Consider Put Options on the Russian ruble and the South African Rand
Heavily Bearish USD/ZAR – The South African Rand Plunges
One of my favorite binary options trades of the year is the South African rand. Very few emerging market currencies have shown such one-sided bias as this currency. Just recently President Jacob Zuma fired the Minister of Finance. This saw the rand plummeting to an all-time low, and the upcoming Fed rate hike is bound to add additional pressure on the South African Rand. Therefore I unequivocally support put options on the USD/ZAR currency pair for the week. As with all currency movements, slight upticks are possible on a negative trend in care, but the overall consensus among currency traders is that the ZAR is bearish. Take a look at the above chart for confirmation. In much the same fashion, the Russian ruble is also languishing as a result of the pressures coming to bear on the currency. Below is a one-month chart of the Russian ruble/US dollar exchange rate. It is absolutely clear that put options on the ruble warranted.
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