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7 Binary Options
There is a newer binary options broker called HY Options that is getting people’s attention. It got ours too and that is why we decided to feature them here. They have a smooth trading platform that is user friendly and offers their traders some very nice risk management tools too. They are also a broker that is registered so that gives us a lot of confidence in them.
Online since: 2020
Max Returns: 82%
Bonus: 10% Up To $5,000 (Applicable only for HYCM Ltd)
Minimum Deposit: $100
Minimum Investment: $5
Maximum Investment: $1500
Currencies: USD, EUR, GBP
Countries: All But US, Iran, Iraq
– It is a site with a very user friendly platform
– It has a large amount of binary option choices
– Large amount of assets to choose from
– Fast withdrawal processing times
– Low minimum withdrawal amounts
– Only simple loyalty bonuses given
7 Binary Options Rating:
The website itself is a product that is run by a company called FTSL Financial Trading Solutions Ltd. Their practices are overseen by the respected CySEC regulating body and they are registered with license number 259/14. People sometimes do not recognize how important it is for binary options brokers to be regulated these days (Binary Option Robot, Banc de Binary, 24option, IQ option); regulating bodies have strict rules about how those sites that are registered under them protect their clients deposits and funds. This should give any customer peace of mind that this web broker is not a scam.
Here are the account offerings on HY Options:
- HY Options Silver Account
An investor needs to deposit at least $250 in an account in order to obtain this account level on HY Options. They will get introductory training and also be assigned an account manager when placed at this account level.
- HY Options Gold Account
An investor needs to deposit at least $2500 in an account in order to obtain this account level on HY Options. They will get advanced training, free trading signals, market reviews and also be assigned a professional account manager when placed at this account level.
An investor needs to deposit at least $25,000 in an account in order to obtain this account level on HY Options. They will get advanced training, free trading signals, market reviews, up to a 50% sign up bonus and also be assigned a specialist account manager when placed at this account level.
1er lugar! El mejor broker de opciones binarias!
Ideal para principiantes! Entrenamiento gratis! Bonos de registro!
As you can see HY Options only offers simple bonuses and even those only kick in at the higher account levels. If you enter into an account level that does have a sign up bonus you will probably not be happy with the minimum account turnover required before you can withdraw any bonus money; currently that requirement is trading 40 times the amount of your initial account deposit. That is well above average for the industry. It must be noted that you are not obligated to accept the bonus and we respect any site that gives investors that option.
Trading Platform and Assets on HY Options
HY Options showed good judgement when choosing the popular SpotOptions to be their website’s trading platform software provider. It is software that never fails to deliver both superior performance and an easy to learn and use interface. That gives HY Options the ability to support many different option types and many different strategies to use these option types with. We really enjoyed placing trades with this web broker.
Here is a list of all the popular binary option choices that can be traded on with HY Options:
- 60 Seconds
- Long Term
- One touch
- Option Builder
- Ladder Options
- Pair Options
This will give any investor an opportunity to find an option choice that fits any trading style. Of course we like any website that offers our favorite option choice which is pairs trading. There are even in trade options such as ‘double up’ which can significantly add to a traders return on investment.
If you have a trade that ends close to your target price at expiration you can invest an extra 30% and extend the expiration time too. There is even a ‘sell’ feature which allows a trader to get back a portion of their trade if it looks like it will end up out of the money; this can be done up to 1 hour before expiration in most cases.
It will give any trader a lot of peace of mind when they can combine the number of option choices with HY Options excellent risk management tools. You really do get the best of both worlds when using HY Options.
The new leverage for UK and EEA* clients is up to 30, while clients from the Rest of the World will still receive leverage up to 200.
*EEA Countries: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK.
HY Options Support Services
The support services on HY Options are very well organized and very professional. They are also a company that is very transparent with their business practices because they are regulated by the reputable CySEC binary options oversight group as we mentioned before. CySEC has strict guidelines that all its members must abide by or they will lose this prestigious certification.
There are 3 ways in which investors can contact HY Options customer support; they are by phone, email or live chat. They were very responsive when we tried to contact them by each method but the only drawback was their customer support is not available 24/7. Their support hours are from Monday – Friday, 7:00am – 4:00pm GMT. Customer support can also be done in several different languages including English, Russian, Arabic, French and Chinese.
HY Options Banking
There are several methods and investor can make deposits and withdrawals with on HY Options. These include such things as MasterCard, Visa, Skrill, PayPal and Neteller. The site is 100% sure and uses SSL encryption to protect your sensitive data. They also have strict identification requirements to protect you when banking with them also.
Most withdrawals are processed within one day if all the instructions for withdrawing are filled out accordingly. Minimum withdrawal is only a very low $20; however, withdrawals under $300 are subject to a $30 fee so that figure is a little misleading.
Our Final Thoughts
Overall we give HY Options passing marks but as you can tell by our pros and cons list there were still a few things we took issue with such as the high bonus turnover requirements and the $30 withdrawal fee for withdrawals that were under the amount of $300. We loved the trading platform and all the variety that it gives any investor the ability to trade the way they like. If you don’t mind the few cons we listed, then we have no problems recommending that you give HY Options a try.
Languages: English, French, Russian, Arabic, Chinese
Trading Options: High / Low, One Touch, 60seconds, Long Term, Option Builder, Pair Options, Ladder Options
Assets: Currencies, Stocks, Indices, Commodities
Early close: Yes
Expiry Times: 60 sec, 2min, 15 min, 24h, 24 hr+, End of Day
Deposits and Withdrawals: Visa, Mastercard, Bank Wire
|Return/Refund:||80% / 0%|
|No. Of Assets:||162|
|US Traders:||Not Accepted|
Editor’s Note – Why HYOptions Doesn’t Suck in 50 Words
If I would to give two good reasons, the first one would be that they are regulated by CySEC. The most important second reason is their terms & conditions and bonus policy. They have a very progressive policy similar to what we’ve been seeing with the new age of trusted broker. What’s truly unique is that HYOptions tells you about all of the possible conflicts of interest between them and you!
Why Does HYOptions Suck in 50 Words
I simply don’t like the dormant account rule. It is understandable that they have some handling fees due to regulations but 25 dollars a month after being dormant for 90 days is a bit too much. In their defense, their minimum investment is very low and 90 days is quite a lot of time.
HYOptions Review – Regulated and a Unique Honest Policy
HYOptions is a CySEC regulated firm since 2020 with the license number 259/14. They are owned by FTSL Financial Trading Solutions Ltd and located in 15, Spyrou Kyprianou Avenue, Matrix Tower II, 1st Floor, Mesa Geitonia, CY-4001 Limassol. For general information, you can contact them through live chat and email.
At first sight, HYOptions might come off as “just” another regulated broker powered by SpotOption. With more and more brokers creating their own unique and fast platforms one might get turned off by the fact that a broker is using SpotOption. Don’t get me wrong, nothing wrong with SpotOption, especially when the broker that is offering it is a regulated company. My point is just that there are a lot of SpotOption brokers to choose from. The difference in HYOptions case is in how they operate, the star is their unique terms and conditions which come with a very uncommon honesty that will surprise everyone! Almost makes you think that they were “HY” on something ;). Ok let’s get to it!
There is a section on HYOptions website called “Legal forms & documents”. Here you will find all the important terms and conditions. The one that caught my eyes the most was the document called: “conflicts of interest policy”. In this document, it clearly states that the company and their employees such as account managers etc, are in a conflict of interest with the client and therefor, measures have been taken to avoid these conflicts. Here is a quote:
“In addition, according to Law, the Company must take all reasonable steps to identify conflicts of interest between itself, including its managers and employees, tied agents or other relevant persons, as well as any person directly or indirectly linked to them by control, and their clients or between one client and another, that arise in the course of providing any investment and ancillary services.”
There is more of course and many examples of where and how conflicts can occur. I suggest you read that document for yourself after this review. In conclusion, the policy is there to prevent possible conflicts and that is something I wish all brokers would provide! So what if a conflict still occurs? There is a complete manual on how to file a complaint. This is truly great, it means they are taking their business seriously and don’t just plan to stop answering your calls IF there happens to be a conflict – like some brokers unfortunately do!
The bonus policy is pretty decent. There is no bonus lock, your money is yours to withdraw but if you wish to withdraw the bonus, you need to reach a 40x the bonus volume. A 50% welcome bonus is available but they are capped at $7000. 40x is relatively high but what I am happy to see is that they don’t rush you into reaching the volume, there is no time limit on the bonus. You deal with it in your own time and as you wish!
I won’t spend much time discussing the platform in this section. Because it’s a typical SpotOption based platform, it looks good and offers many types of trading opportunities. Short term trading is available like 30 seconds and up, with only a minimum of 5$ per trade or high/low, long term, pairs, touch and ladders with 10$ minimum and above. Some features are “Settle Now” (close position early) and “Roll Over” (prolong expiry).
A couple improvements I would love to see is additional deposit and withdrawal methods and a demo account for beginners. Overall, I think HYOptions seems to be a good choice for anyone who is tired of scam brokers and dirty tricks.
Is HYOptions a Scam?
HYOptions is not a scam. They became known in the beginning of 2020, and so far though, they haven’t brought any negative attention on themselves and that is a good sign. The conflict of interest policy that they have implemented, a so called “Chinese Wall”, will prohibit those good old dirty account manager tricks and will keep you safe. And if a there is a problem that disturbs you, HYOptions even helps you file a complaint and solve your issue. We’ll just have to keep monitoring and update our readers.
So far so good, there are currently no complaints. See above section “Is HYOptions a scam?”.
There is a 50% welcoming bonus and the required volume to release it is 40x the bonus. The bonuses are capped at a maximum of $7000. In addition, there are no bonus locks and no time limit to reach the required trade volume.
Withdrawals are processed within 10 business days and are charged 30$ if the withdrawal volume is equal or less than 300$. It’s pretty high but on the other hand, if you withdraw funds above 300$ you will always have free withdrawals!
User Friendliness 17/20
The SpotOption platform is user friendly and there is an education center to get you on your feet. HYOptions is available in 5 languages and the terms and conditions are well explained and categorized.
No. of Assets and Expiry time 18/20
There are 27 currencies, 6 Metals, 5 Commodities, 40 Indices and 84 Stocks adding up to 162 in total. The asset index is relatively big and the platform offers pairs, ladders, touch options, short and long term trading. Expiry times are every 15 minutes to hourly, end of day, week, month and every six months. Short term starts at 30 seconds up to 5 minutes.
Commissions, Support and Effective Return 15/20
The highest return is 82%, relatively okay but not the highest in the industry. There is a withdrawal fee for any withdrawals ≤ 300$. Live chat is available on business days to provide support.
Deposit, Payment and Bonus 15/20
There are only three transaction methods available which is very limiting. Bonuses reach up to a 7000$ max or 50% for new clients but the terms are decent, as explained before. Needed volume is 40x the volume and everything is well-explained in their bonus policy.
Website Extra’s 10/20
Advanced trading tools for technical analysis inside the platform plus the most cutting edge platform SpotOption has to offer.
HYOptions Overall Ratings 81/100
What Is an Option?
Options are financial instruments that are derivatives based on the value of underlying securities such as stocks. An options contract offers the buyer the opportunity to buy or sell—depending on the type of contract they hold—the underlying asset. Unlike futures, the holder is not required to buy or sell the asset if they choose not to.
- Call options allow the holder to buy the asset at a stated price within a specific timeframe.
- Put options allow the holder to sell the asset at a stated price within a specific timeframe.
Each option contract will have a specific expiration date by which the holder must exercise their option. The stated price on an option is known as the strike price. Options are typically bought and sold through online or retail brokers.
- Options are financial derivatives that give buyers the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price and date.
- Call options and put options form the basis for a wide range of option strategies designed for hedging, income, or speculation.
- Although there are many opportunities to profit with options, investors should carefully weigh the risks.
How Options Work
Options are a versatile financial product. These contracts involve a buyer and a seller, where the buyer pays an options premium for the rights granted by the contract. Each call option has a bullish buyer and a bearish seller, while put options have a bearish buyer and a bullish seller.
Options contracts usually represent 100 shares of the underlying security, and the buyer will pay a premium fee for each contract. For example, if an option has a premium of 35 cents per contract, buying one option would cost $35 ($0.35 x 100 = $35). The premium is partially based on the strike price—the price for buying or selling the security until the expiration date. Another factor in the premium price is the expiration date. Just like with that carton of milk in the refrigerator, the expiration date indicates the day the option contract must be used. The underlying asset will determine the use-by date. For stocks, it is usually the third Friday of the contract’s month.
Traders and investors will buy and sell options for several reasons. Options speculation allows a trader to hold a leveraged position in an asset at a lower cost than buying shares of the asset. Investors will use options to hedge or reduce the risk exposure of their portfolio. In some cases, the option holder can generate income when they buy call options or become an options writer.
American options can be exercised any time before the expiration date of the option, while European options can only be exercised on the expiration date or the exercise date. Exercising means utilizing the right to buy or sell the underlying security.
Options Risk Metrics: The Greeks
The «Greeks» is a term used in the options market to describe the different dimensions of risk involved in taking an options position, either in a particular option or a portfolio of options. These variables are called Greeks because they are typically associated with Greek symbols. Each risk variable is a result of an imperfect assumption or relationship of the option with another underlying variable. Traders use different Greek values, such as delta, theta, and others, to assess options risk and manage option portfolios.
Delta (Δ) represents the rate of change between the option’s price and a $1 change in the underlying asset’s price. In other words, the price sensitivity of the option relative to the underlying. Delta of a call option has a range between zero and one, while the delta of a put option has a range between zero and negative one. For example, assume an investor is long a call option with a delta of 0.50. Therefore, if the underlying stock increases by $1, the option’s price would theoretically increase by 50 cents.
For options traders, delta also represents the hedge ratio for creating a delta-neutral position. For example if you purchase a standard American call option with a 0.40 delta, you will need to sell 40 shares of stock to be fully hedged. Net delta for a portfolio of options can also be used to obtain the portfolio’s hedge ration.
A less common usage of an option’s delta is it’s current probability that it will expire in-the-money. For instance, a 0.40 delta call option today has an implied 40% probability of finishing in-the-money. (For more on the delta, see our article: Going Beyond Simple Delta: Understanding Position Delta.)
Theta (Θ) represents the rate of change between the option price and time, or time sensitivity – sometimes known as an option’s time decay. Theta indicates the amount an option’s price would decrease as the time to expiration decreases, all else equal. For example, assume an investor is long an option with a theta of -0.50. The option’s price would decrease by 50 cents every day that passes, all else being equal. If three trading days pass, the option’s value would theoretically decrease by $1.50.
Theta increases when options are at-the-money, and decreases when options are in- and out-of-the money. Options closer to expiration also have accelerating time decay. Long calls and long puts will usually have negative Theta; short calls and short puts will have positive Theta. By comparison, an instrument whose value is not eroded by time, such as a stock, would have zero Theta.
Gamma (Γ) represents the rate of change between an option’s delta and the underlying asset’s price. This is called second-order (second-derivative) price sensitivity. Gamma indicates the amount the delta would change given a $1 move in the underlying security. For example, assume an investor is long one call option on hypothetical stock XYZ. The call option has a delta of 0.50 and a gamma of 0.10. Therefore, if stock XYZ increases or decreases by $1, the call option’s delta would increase or decrease by 0.10.
Gamma is used to determine how stable an option’s delta is: higher gamma values indicate that delta could change dramatically in response to even small movements in the underlying’s price.Gamma is higher for options that are at-the-money and lower for options that are in- and out-of-the-money, and accelerates in magnitude as expiration approaches. Gamma values are generally smaller the further away from the date of expiration; options with longer expirations are less sensitive to delta changes. As expiration approaches, gamma values are typically larger, as price changes have more impact on gamma.
Options traders may opt to not only hedge delta but also gamma in order to be delta-gamma neutral, meaning that as the underlying price moves, the delta will remain close to zero.
Vega (V) represents the rate of change between an option’s value and the underlying asset’s implied volatility. This is the option’s sensitivity to volatility. Vega indicates the amount an option’s price changes given a 1% change in implied volatility. For example, an option with a Vega of 0.10 indicates the option’s value is expected to change by 10 cents if the implied volatility changes by 1%.
Because increased volatility implies that the underlying instrument is more likely to experience extreme values, a rise in volatility will correspondingly increase the value of an option. Conversely, a decrease in volatility will negatively affect the value of the option. Vega is at its maximum for at-the-money options that have longer times until expiration.
Those familiar with the Greek language will point out that there is no actual Greek letter named vega. There are various theories about how this symbol, which resembles the Greek letter nu, found its way into stock-trading lingo.
Rho (p) represents the rate of change between an option’s value and a 1% change in the interest rate. This measures sensitivity to the interest rate. For example, assume a call option has a rho of 0.05 and a price of $1.25. If interest rates rise by 1%, the value of the call option would increase to $1.30, all else being equal. The opposite is true for put options. Rho is greatest for at-the-money options with long times until expiration.
Some other Greeks, with aren’t discussed as often, are lambda, epsilon, vomma, vera, speed, zomma, color, ultima.
These Greeks are second- or third-derivatives of the pricing model and affect things such as the change in delta with a change in volatility and so on. They are increasingly used in options trading strategies as computer software can quickly compute and account for these complex and sometimes esoteric risk factors.
Risk and Profits From Buying Call Options
As mentioned earlier, the call options let the holder buy an underlying security at the stated strike price by the expiration date called the expiry. The holder has no obligation to buy the asset if they do not want to purchase the asset. The risk to the call option buyer is limited to the premium paid. Fluctuations of the underlying stock have no impact.
Call options buyers are bullish on a stock and believe the share price will rise above the strike price before the option’s expiry. If the investor’s bullish outlook is realized and the stock price increases above the strike price, the investor can exercise the option, buy the stock at the strike price, and immediately sell the stock at the current market price for a profit.
Their profit on this trade is the market share price less the strike share price plus the expense of the option—the premium and any brokerage commission to place the orders. The result would be multiplied by the number of option contracts purchased, then multiplied by 100—assuming each contract represents 100 shares.
However, if the underlying stock price does not move above the strike price by the expiration date, the option expires worthlessly. The holder is not required to buy the shares but will lose the premium paid for the call.
Risk and Profits From Selling Call Options
Selling call options is known as writing a contract. The writer receives the premium fee. In other words, an option buyer will pay the premium to the writer—or seller—of an option. The maximum profit is the premium received when selling the option. An investor who sells a call option is bearish and believes the underlying stock’s price will fall or remain relatively close to the option’s strike price during the life of the option.
If the prevailing market share price is at or below the strike price by expiry, the option expires worthlessly for the call buyer. The option seller pockets the premium as their profit. The option is not exercised because the option buyer would not buy the stock at the strike price higher than or equal to the prevailing market price.
However, if the market share price is more than the strike price at expiry, the seller of the option must sell the shares to an option buyer at that lower strike price. In other words, the seller must either sell shares from their portfolio holdings or buy the stock at the prevailing market price to sell to the call option buyer. The contract writer incurs a loss. How large of a loss depends on the cost basis of the shares they must use to cover the option order, plus any brokerage order expenses, but less any premium they received.
As you can see, the risk to the call writers is far greater than the risk exposure of call buyers. The call buyer only loses the premium. The writer faces infinite risk because the stock price could continue to rise increasing losses significantly.
Risk and Profits From Buying Put Options
Put options are investments where the buyer believes the underlying stock’s market price will fall below the strike price on or before the expiration date of the option. Once again, the holder can sell shares without the obligation to sell at the stated strike per share price by the stated date.
Since buyers of put options want the stock price to decrease, the put option is profitable when the underlying stock’s price is below the strike price. If the prevailing market price is less than the strike price at expiry, the investor can exercise the put. They will sell shares at the option’s higher strike price. Should they wish to replace their holding of these shares they may buy them on the open market.
Their profit on this trade is the strike price less the current market price, plus expenses—the premium and any brokerage commission to place the orders. The result would be multiplied by the number of option contracts purchased, then multiplied by 100—assuming each contract represents 100 shares.
The value of holding a put option will increase as the underlying stock price decreases. Conversely, the value of the put option declines as the stock price increases. The risk of buying put options is limited to the loss of the premium if the option expires worthlessly.
Risk and Profits From Selling Put Options
Selling put options is also known as writing a contract. A put option writer believes the underlying stock’s price will stay the same or increase over the life of the option—making them bullish on the shares. Here, the option buyer has the right to make the seller, buy shares of the underlying asset at the strike price on expiry.
If the underlying stock’s price closes above the strike price by the expiration date, the put option expires worthlessly. The writer’s maximum profit is the premium. The option isn’t exercised because the option buyer would not sell the stock at the lower strike share price when the market price is more.
However, if the stock’s market value falls below the option strike price, the put option writer is obligated to buy shares of the underlying stock at the strike price. In other words, the put option will be exercised by the option buyer. The buyer will sell their shares at the strike price since it is higher than the stock’s market value.
The risk for the put option writer happens when the market’s price falls below the strike price. Now, at expiration, the seller is forced to purchase shares at the strike price. Depending on how much the shares have appreciated, the put writer’s loss can be significant.
The put writer—the seller—can either hold on to the shares and hope the stock price rises back above the purchase price or sell the shares and take the loss. However, any loss is offset somewhat by the premium received.
Sometimes an investor will write put options at a strike price that is where they see the shares being a good value and would be willing to buy at that price. When the price falls, and the option buyer exercises their option, they get the stock at the price they want, with the added benefit of receiving the option premium.
A call option buyer has the right to buy assets at a price that is lower than the market when the stock’s price is rising.
The put option buyer can profit by selling stock at the strike price when the market price is below the strike price.
Option sellers receive a premium fee from the buyer for writing an option.
In a falling market, the put option seller may be forced to buy the asset at the higher strike price than they would normally pay in the market
The call option writer faces infinite risk if the stock’s price rises significantly and they are forced to buy shares at a high price.
Option buyers must pay an upfront premium to the writers of the option.
Real World Example of an Option
Suppose that Microsoft (MFST) shares are trading at $108 per share and you believe that they are going to increase in value. You decide to buy a call option to benefit from an increase in the stock’s price.
You purchase one call option with a strike price of $115 for one month in the future for 37 cents per contact. Your total cash outlay is $37 for the position, plus fees and commissions (0.37 x 100 = $37).
If the stock rises to $116, your option will be worth $1, since you could exercise the option to acquire the stock for $115 per share and immediately resell it for $116 per share. The profit on the option position would be 170.3% since you paid 37 cents and earned $1—that’s much higher than the 7.4% increase in the underlying stock price from $108 to $116 at the time of expiry.
In other words, the profit in dollar terms would be a net of 63 cents or $63 since one option contract represents 100 shares ($1 – 0.37 x 100 = $63).
If the stock fell to $100, your option would expire worthlessly, and you would be out $37 premium. The upside is that you didn’t buy 100 shares at $108, which would have resulted in an $8 per share, or $800, total loss. As you can see, options can help limit your downside risk.
Options spreads are strategies that use various combinations of buying and selling different options for a desired risk-return profile. Spreads are constructed using vanilla options, and can take advantage of various scenarios such as high- or low-volatility environments, up- or down-moves, or anything in-between.
Spread strategies, can be characterized by their payoff or visualizations of their profit-loss profile, such as bull call spreads or iron condors. See our piece on 10 common options spread strategies to learn more about things like covered calls, straddles, and calendar spreads.
1er lugar! El mejor broker de opciones binarias!
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