What will they think of next? Is trading options with a weekly expiration too long? According to latest news, the newest binary option contract from Nadex, the 20 minute option, might suit some traders’ needs.
The North American Derivatives Exchange (Nadex), a regulated online binary options exchange in the U.S. announced the launch of 20-minute binary options contracts earlier this week.
The new contracts are geared at retail traders who have a short-term speculative focus and want to get involved in the options market. The new 20-minute binary contracts will be listed between the hours of 9:40am and 4pm EST, Monday through Friday and are available on the top U.S. Index products.
Prior to the launch, Nadex options have had hourly, daily and weekly expiration time. Prior to the launch, Nadex options have had hourly, daily and weekly expiration times. Nadex’s new binary contracts will have durations of 20 minutes, with expirations on the hour, at 20 minutes after the hour and 40 minutes after the hour
In just one week, options contracts with an expiration of 20 minutes have become the second most popular offering on trading platform Nadex, as retail investors seek faster and faster gratification.
The contracts were launched last week with little fanfare by Nadex, the leading provider of binary options in North America. The company offers options with many durations and according to reports, “did not expect the tremendous level of early interest it’s seen.” Hourly contracts remain the most popular kinds of options on the company’s platform.
Since the launch, twenty-minute options have accounted for upwards of 15 percent of total trading volume on Nadex.. These extremely short-term options are available for trading on the S&P 500, Russell 2000 and Nasdaq 100 Index futures, as well as Dow Jones Industrial Average futures.
“This is trading,” said Nadex CEO Tim McDermott. “The 20-minute contracts offer great opportunities.”
Until now, Nadex binary options have had hourly expiration times. (They have been open for two hours previous to expiration but in many cases having expirations each hour.) Beginning November 3, 2014, the US Indices markets will offer contracts expiring every 20 minutes from 10:00 AM to 4:00 PM ET. Nadex has submitted its intent to the CFTC to add new intraday 20-minute binary contracts to its current listing of US 500 (Underlying: ES S&P 500 E-mini), US Tech 100 (Underlying: NQ Nasdaq 100), SmallCap 2000 (Underlying: TF Russell 2000) and Wall Street 30 (Underlying: YM DOW Jones 30).