One binary options trading strategy that you can use is trading with the news.  Let’s take a look at the news that came from Microsoft.

In 2007 Microsoft purchased aQuantive to boost online advertising as a counter measure to Google Inc. purchasing digital ad firm Doubleclick.  Microsoft announced that it will write-off the 6.2 billion dollars of their initial investment.  Microsoft stock which closed at $30.56 was trading at $30.28 in after-hours trading.

Microsoft bought aQuantive for $6.3 billion in cash.  This is the second largest purchase for Microsoft, exceeded only by its purchase of Skype for $8.5 billion last year.  This write off will wipe out any profit Microsoft would have seen this quarter.  Analysts were predicting earnings of 62 cents a share, or $5.25 billion, on July 19.  In addition to the write-down, Microsoft said, “lower than previous estimates” when referring to its expectations for future growth and profitability at its online services unit.

As a binary option trader you may feel that the momentum of the stock price is moving down.  If the momentum continues you can take advantage of the speed and simplicity of binary options to capitalize on that move.  You can make various “Put” purchases.  One that you might want to employ is a 60 second binary option.

You can trade Microsoft today at Cedar Finance.

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