Binary Options Update For Monday 11/19/2012

The Australian market opened higher today on hopes that US leaders will reach a deal on the fiscal cliff. The benchmark S&P/ASX 200 was last up 17.6 to 4354.40. Republicans and Democrats must reach a deal before January 1 to avoid huge tax hikes and spending cuts if a compromise isn’t reached.

Binary option calls were performing well on resource stocks. BHP Billiton surged 43 cents to $33.36, Rio Tinto was up 17 cents to $57.07 and Fortescue gained two cents to $3.92.

Billabong shares were up 9.5 cents, or 12.84 per cent, to $.8350 after the head of the retailer’s US business Paul Naude said he was considering taking control of the company.

The four major banks also had a positive opening. ANZ was up 8 cents to $23.74. Westpac gained seven cents to $24.49 and Commonwealth Bank added 24 cents to $58.52.

The Aussie dollar binary option was higher with equity markets stronger. The Aussie was last at 1.0376 to the US Dollar, near session highs.  The Aussie reached its strongest level in more than six months against the yen as the Bank of Japan begins a two-day policy with political pressure mounting for more monetary stimulus. The New Zealand dollar maintained a three-day advance versus Japan’s currency after data showed the South Pacific nation’s services industry expanded at the fastest pace in almost five years. Australia’s dollar climbed to 84.51 yen, a level unseen since April 27, before trading at 84.30 as of 2:45 p.m. in Sydney, 0.3 percent higher than the close on Nov. 16.

Binary options in the commodity markets were all higher as risk on sentiment continued. Crude oil rose 68 cents to $87.60 as conflict continued in Israel. Israeli ground forces are poised to invade Gaza for the first time in 4 years. Ehud Barak, the Israel Defense Minister, said “We will continue to act, to attack and perhaps to even intensify the operation.”

Gold gained for the first time in three days, climbing alongside other commodities as the dollar weakened and investors boosted holdings in exchange-traded products to a record.

Gold for December delivery rose 0.3 percent to $1,720.60 an ounce on the Comex. Money managers increased their net-long positions in Comex futures and options for the first time in five weeks, adding 7.7 percent to 140,162 contracts in the week to Nov. 13, Commodity Futures Trading Commission data show.

CME Group Inc. last week cut the amount that speculators must keep on deposit for an initial account in gold futures on the Comex to $7,425 per contract from $9,113. The maintenance margin was held at $6,750. The change is effective after the close of business on Nov. 20.

Cash silver rose 0.7 percent to $32.5675 an ounce and spot platinum climbed 0.4 percent to $1,565.25 an ounce, after falling 1.7 percent in the last two days. Palladium gained 0.3 percent to $629.50 an ounce.

With the strength across the board, binary options traders want to be looking at buying calls versus puts as markets are higher.