Been reading about put call parity and how it shows the relationship between puts and calls at the same strike price.
Seems like it could help spot pricing issues or opportunities but I’m not sure how to actually use this in real trading.
Do you factor this into your decisions when choosing between puts and calls?
Put-call parity and other traditional options theories don’t work well with binary options. The focus shifts to fixed payouts instead of the underlying asset’s movement.
The models are completely different. Binary options give you set returns no matter how far the price moves in your favor.
You’re better off focusing on technical analysis and timing the market for these trades.
I wasted weeks studying put call parity, thinking it’d help with binary trades.
Total waste of time - doesn’t work with fixed payouts. Lost money trying to use regular options strategies.
Stick to momentum and volume. That’s what actually matters for short-term trades.
Put call parity isn’t useful for binary options. Focus on price action instead.
Put call parity is relevant for stock options, but it doesn’t apply to binary options on Pocket Option. The theory suggests a specific price relationship between puts and calls, but that doesn’t hold in our context. Instead, concentrate on price action, support and resistance levels, and market sentiment. Avoid getting sidetracked by options theory that isn’t applicable to our trading style.
Binary options don’t follow put-call parity at all. The fixed payouts disrupt normal arbitrage relationships. Focus on candlestick patterns and volume analysis instead.