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How to Understand Binary Options. A binary option, sometimes called a digital option, is a type of option in which the trader takes a yes or no position on the price. Trade stock options from your Merrill Edge investment account. Options trading gives you the opportunity to buy or sell a particular asset at a specific price. What are Stock Options? Before you begin trading options, you should know what exactly is a stock option. Buying straddles is a great way to play earnings.
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