If you are looking forward to investing in options trading then you surely wonder not only about which assets to choose, but, more importantly, which time-frame would be the most profitable for you, in other words what types of options you should trade. Depending on market conditions, market volatility and direction, time of expiration and your personal goals, your choices of different types of options are set as following:
Up/Down is one of the most common types of options and allows traders to choose one of the two direction on a medium time-frame, usually from 15 minutes to a day.
60 Seconds or Short Term are pretty much alike to the previous type, but the time frame is much shorter, namely, from 15 seconds or even several ticks up to several minutes. This is one of new and highly traded types of options due to the fast overturn of cash and possibility of instant profit. Traders usually choose this type in highly volatile, singly directed market, which usually happens upon release of major market news.
Touch / No Touch types of options trading are another advanced method of investing. If it comes down to predefined price levels this method of trading is the most appropriate one. You are given a predefined price level and it is up to you to decide if it will be “touched” in the time allotted.
Range type provides traders with a price corridor and the goal is to decide if the price remains within it or the range will be breached. Such kinds of options are the most profitable if an asset is trading sideways in a non-volatile manner within the defined time-frame.
Follow is one of types of options trading that allows traders to review the trades of the most prolific trades and mimic their trades with a click of a button. It is a useful tool if you are just starting out and are in need of guidance.
Lastly, Long Term trades should be placed if you prefer stock market settings. If you are sure that the given asset's price will slightly change in a few months or a year, you can invest on this notion and gain a much higher return with these kinds of options.
Therefore, understanding different types of options you can choose the most appropriate for yourself and trade making more profit.