Crypto volatile again, Whats stopping you from trying Options Trading? - page 4.

newbie

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Quote from: davis196 on September 25, 2019, 02:19:07 AM

Thanks for explaining how options trading works.It might be useful for some newbie traders,but I already know how they work.The risk is less,but it's still there.If the bitcoin price collapses and the option expires,you lose the price paid for the option-$100.Not bad,but if you bought bitcoins directly,there's still a chance that bitcoin price might recover and you could get profit in the long term.
By the way,where are you trading bitcoin options?

Hahaha i like your permabull thinking! that's why i rarely buy options, only when I think there may be significant movement, then I will make some trades. Otherwise i prefer selling options for premium, to me it has better returns than staking or lending ( altho there are risks too).

vennali

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Quote from: davis196 on September 25, 2019, 02:19:07 AM

Thanks for explaining how options trading works.It might be useful for some newbie traders,but I already know how they work.The risk is less,but it's still there.If the bitcoin price collapses and the option expires,you lose the price paid for the option-$100.Not bad,but if you bought bitcoins directly,there's still a chance that bitcoin price might recover and you could get profit in the long term.
By the way,where are you trading bitcoin options?

Check out my Signature Cool

. Sparrow Exchange. We have designed our UI in such a way, that even novice traders can understand and make a quick trade. You may need to register to be able to check the UI. If you just want a sneak peak, check out our medium channel. All the necessary links are in my signature. Cheers!

vennali

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Quote from: gettingrektallthetime on September 25, 2019, 12:14:34 AM

Should have bought some puts yesterday, finally seeing some volatility in bitcoin Cheesy

Oh yeah, and I did! Cool

Quote from: slashz9 on September 25, 2019, 12:55:36 AM

Quote from: vennali on September 23, 2019, 08:24:45 PM

~snip~.

i think you should put guide or how to choose the correct option, if only said so difficult to understand.
maybe video or demonstration,will be better.

Yeah, We are working on an article/book to help the new users with the basics and common strategies. We already have a few introductory videos on youtube, if any doubts, You could join our telegram and feel free to ask them. Our community will be happy to help you understanding it.

Quote from: Herbert2020 on September 24, 2019, 05:00:12 AM

all the while that you would be waiting and hoping to make a profit from a scenario that is highly unlikely and losing money for it, others (the day traders doing the normal routine) are making profit from each up and down inside that channel!
and that's what stopping people from "options trading".

I'll tell you a fact, Option strategies can be designed to profit from a wide variety of stock market outcomes. And that can be accomplished with limited risk. You should give it a try. I'm sure it will change your mind.

Warren Buffet has said, “If you’ve been playing poker for half an hour and you still don’t know who the patsy is, you’re the patsy.”
If you are actively trading and not using options, consider yourself the pasty in the market. Options offer significant advantages, if used properly, that overwhelmingly outweigh their drawbacks.

davis196

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Thanks for explaining how options trading works.It might be useful for some newbie traders,but I already know how they work.The risk is less,but it's still there.If the bitcoin price collapses and the option expires,you lose the price paid for the option-$100.Not bad,but if you bought bitcoins directly,there's still a chance that bitcoin price might recover and you could get profit in the long term.
By the way,where are you trading bitcoin options?

logfiles

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Top Crypto Casino

Easier said than done.

Well volatility is good but i prefer following a bullish and bearish trend using Margin trading. For example yesterday through that drop, I managed to make 50% profit of my total portfolio value.
I decided to play it safe... Max Leverage was x25. I should have easily gone x50 if i was not being distracted with other things.

silversurfer1958

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No, this type of leverage trading requires your account to be secured. If it exceeds the limit, your account will be burnt and everything will disappear. It's not as simple as you think, if making money is too easy, the whales were definitely involved in this type of transaction first. so I don't really like this kind of risky trade.

slashz9

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Quote from: vennali on September 23, 2019, 08:24:45 PM

Here are some benefits of Options Trading, especially in a volatile market like Crypto:
Leverage and limit risks while getting higher potential returns - Option trading is very attractive for small pocket traders. By taking position in options, one can reduce the cost significantly.
For example,
It's Monday. BTC @ 10k
You buy a put for 1 BTC @ 9k expiring on Friday for $100
[if BTC falls below 9k, you can force someone to buy your BTC at 9k]
Wednesday, BTC flies up to 13k. You won't get stopped or liquidated. You are fine. Keep sipping your cocktails.
Thursday, BTC flies down to 7k. Still not your problem.
Friday, BTC settles at 8k at 4pm Singapore time.
Your profit is: 9k (strike price) - 8k (settlement price) - $100 (cost of premium) = $900
$900 profit from using $100. 9X return.

i think you should put guide or how to choose the correct option, if only said so difficult to understand.
maybe video or demonstration,will be better.

Quote from: Herbert2020 on September 24, 2019, 05:00:12 AM

all the while that you would be waiting and hoping to make a profit from a scenario that is highly unlikely and losing money for it, others (the day traders doing the normal routine) are making profit from each up and down inside that channel!
and that's what stopping people from "options trading".

it depends, some people also do option trading, if that can make profit for them why not.
You might consider people trading from rising / falling prices to be more reasonable.
but there still a lot trading with option trading.

ladyfox

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Quote from: 1Referee on September 24, 2019, 04:38:33 AM

Crypto volatile again? Crypto (especially Bitcoin) has been experiencing a consistent volatility decline throughout the last couple of months.

I don't think most people know what options actually are, and when you don't know what they are and thus how they work (read, what the risks are), you shouldn't be getting into them. People have barely reached a point where they understand how you long/short on Bitmex. Perhaps a good idea for you (or someone else) to make a tutorial/guide so that people can get a clue of what options are?

Yes, but with halving nearing, theres a good chance that the volatility goes up again. You never know, this could be the calm before the storm. Better be safe than sorry. Cheesy

Quote from: Herbert2020 on September 24, 2019, 05:00:12 AM

the only problem is that you wish for that kind of swing but what really happens is that you start at $10100 price then it only goes down to $9600 then comes back up to $10200 and jumps up and down in that area before it shoots back up again to $12k,.... prices.

all the while that you would be waiting and hoping to make a profit from a scenario that is highly unlikely and losing money for it, others (the day traders doing the normal routine) are making profit from each up and down inside that channel!
and that's what stopping people from "options trading".

That is true, but not everyone has the time and day, to day trade. A lot of us have a full time job and delve into crypto as a hobby. It is a much accessible way to grow your assets in a safer and controlled way.. You can gain easy premium with options and thats what keeps me interested. It works more like an insurance, while also paying me weekly (I personally do weekly trades).

gettingrektallthetime

newbie

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Should have bought some puts yesterday, finally seeing some volatility in bitcoin Cheesy

abhinavsofttech007

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Hey vennali I agree with you option trading needs less budget as compared to crypto. but there is loss of risk in option trading too. And now talking about crypto market. market is stable as soon as possible. http://scarlettinvest.com/

Herbert2020

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the only problem is that you wish for that kind of swing but what really happens is that you start at $10100 price then it only goes down to $9600 then comes back up to $10200 and jumps up and down in that area before it shoots back up again to $12k,.... prices.

all the while that you would be waiting and hoping to make a profit from a scenario that is highly unlikely and losing money for it, others (the day traders doing the normal routine) are making profit from each up and down inside that channel!
and that's what stopping people from "options trading".

1Referee

legendary

Activity: 2170

Merit: 1427

Crypto volatile again? Crypto (especially Bitcoin) has been experiencing a consistent volatility decline throughout the last couple of months.

I don't think most people know what options actually are, and when you don't know what they are and thus how they work (read, what the risks are), you shouldn't be getting into them. People have barely reached a point where they understand how you long/short on Bitmex. Perhaps a good idea for you (or someone else) to make a tutorial/guide so that people can get a clue of what options are?

carter34

member

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Is hedging a trade minimizing losses or to hold your open positions on the opposite side. Hedging of market merely helps you to postpone the losing day because it is dangerous. Hence, at the long run, you see that you are losing when you take out one of the position.

vennali

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Here are some Strategies to Combat Crypto Market Volatility with Options Trading

vennali

legendary

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Here are some benefits of Options Trading, especially in a volatile market like Crypto:
Leverage and limit risks while getting higher potential returns - Option trading is very attractive for small pocket traders. By taking position in options, one can reduce the cost significantly.
For example,
It's Monday. BTC @ 10k
You buy a put for 1 BTC @ 9k expiring on Friday for $100
[if BTC falls below 9k, you can force someone to buy your BTC at 9k]
Wednesday, BTC flies up to 13k. You won't get stopped or liquidated. You are fine. Keep sipping your cocktails.
Thursday, BTC flies down to 7k. Still not your problem.
Friday, BTC settles at 8k at 4pm Singapore time.
Your profit is: 9k (strike price) - 8k (settlement price) - $100 (cost of premium) = $900
$900 profit from using $100. 9X return.

In the alternate scenario, BTC settles at 20k. Your maximum loss is still 100$.

Works in different market scenarios - One of the key advantages of options trading is the flexibility of changing strats as per different market conditions. There are various strategies for all kind of markets, whether bullish, bearish or sideways

You can hedge your trades to protect them from incurring losses.

Remember, shorting is a dangerous game, why not try options and limit your risks peacefully? Cool

Topic: Crypto volatile again, Whats stopping you from trying Options Trading? - page 4. (Read 918 times)