In many cases, binary events often lead to “all-or-nothing” outcomes.
It’s either success or failure. Yes or no.
Scott Bauer follows a certain way of trading during binary events. It involves looking for very specific details that a lot of traders tend to overlook.
He joined his son, Jake—who hosts the Positively Sloped Podcast for his firm Kingsview Partners—to break down his trading strategy for binary events, what he looks for, and highlights some current examples.
The analysis, insights, and strategies shared by Prosper Trading Academy’s coaches in Prosper Insider are strictly for educational and informational purposes only. All content reflects the personal opinions of the coaches and should not be construed as specific investment advice or recommendations. Any examples discussed are illustrative in nature and do not represent actual live trade signals or instructions to buy or sell securities. Trading involves risk, and individuals should carefully evaluate their own financial situation before making investment decisions.
Scott covers:
- Leveraging volatility disparities during binary events
- His specific approach for selling option premium
- How he would have considered trading CHWY ahead of yesterday’s earnings report
- The big reversion he always expects to happen in options after binary events
- When Scott would consider taking a directional trade during binary events
- The large gap players are trading around in the oil and commodities market
