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

Well that is what you hope to happen but things don't always go as planned right.
You are only looking at the positive aspects of options trading while there are negative aspects too.
Most of the times the market goes against us and that is what fears us the most.
This fear of loss is what makes me not to try options trading since baring such huge losses is not affordable to me.
And as per the rule, only invest what you can afford to lose. 

Your explanation was totally giving me a confusing on my part dude, Honestly, I don't get what you just said in the above..
Just what I understand is when I do trade I analyze the buyers and sellers in chart graph then, when I see that there is a chance
for me to gain I will set the price for buy and sell support, just simple as that.

hi guys, excellent project! 

I would like to ask for a comparison between Sparrow and the other players in the decentralised derivaties market such as Level01, Synthetix, Digitex, SpectreAI, Duo Network and Lever J.  I believe Digitex has a big launch soon and Synthetix has the bulk of the volume.

Which exactly is the point of this post, by educating traders/crypto enthusiasts about the tools that could help you boost your investment and if not boost, at least safeguard your investment incase of a bearish market by using Options as an insurance. 

I think one thing that stop me from trying other options trading is lack of knowledge because all we know that dealing in every crypto activity is very risky. If you don't have enough knowledge you will only waste your time,money and effort because your investment will fall into loss because you don't know how to decide and move about your investment.

3 Strategies to Combat Crypto Market Volatility with Options Trading

We have all heard stories of crypto traders losing over 50% within weeks or even days. This is what happens when amateurs do not know how to control risk. Options when used correctly can help you combat crypto market volatility and even profit from it. I am going to share 3 strategies that professionals use daily.
Read more by clicking HERE or the top headline.

Cryptocurrency is volatile, and we cannot expect what kind of value it will give to us. However, still many people are trying to invest in the different coin because they see the potential of each currency that it will provide them with a profit; it depends on the price of the market. Trading is an exchange of money into different cryptocurrencies, this time, this kind of method usually people use to earn money; they are buying a lot of coins for a lower value and wait for it to becomes profitable and sell. Even this kind of process looks like easy still we need to take a lot of knowledge and skills when do we buy and sell to gain profit, not all the time traders can gain a lot of income because of falling of price.

I found some good material for people to learn about Options trading. If you are interested, Click HERE. Start your new year by educating about Options and may your journey to Riches begin here. 

What will be your option play this Christmas?

Pick the position that you think will generate the most ROI - 3 lucky winners will stand to win 100 USDT each! 🎅💰

Participate now: by Clicking HERE

I got to know this options trading this day because one of the platform/exchange that i use to trade open a simulation for options but i don't really get what is put and call in that options where there is a difference in both price. Another thing that i want to ask if this option is based on bitcoins price as well. Thank you.

and it did. It was a great time to buy puts incase it was missed. It still seems to be a decent time , especially if you are bearish. There's a chance that we might see 6.6k before any further bull runs.

Bitcoin Options Call/Put Ratio Indicates More Bearish Sentiment In The Short Term
https://www.newsbtc.com/2019/12/16/bitcoin-options-call-put-ratio-indicates-more-bearish-sentiment-in-the-short-term/

now BTC 7k, wondering if will go lower...

Good time to make some put options. Remember, Shorting is dangerous for the trading market. Why not get some insurance instead and keep BTC at a healthy level.  



You can check out Sparrow's blog and learn more about it.

Yes, it’s really true that we should only buy when bitcoin will be cheap but don’t wait for any more to see the price falling as market use to rise suddenly that's why Better trader now and but some coins as cheap as you can. Holding is the best way to obtain your demanded profit. I mostly wait for that time when the market will again pump and dump so that I will be able to buy low price coins.

Cheap options! Good time to buy. 0.1 btc contract only $8!!

Yeah i'm sure the latest price drops is a strategy by the whales to make people lost hopes and sell their bitcoin with cheap price, then they will pump it hard after the price is too low and they will hold until the halving and the price must be pumped hard. The crypto or bitcoin investors must be have a good consistency with their investation so they won't outplayed by the whales

The number one that hold my back to buy is the money and short interest of the people. I believe in bitcoin but I need to convince myself and my pocket that I will get profits soon. Though there are downs and up of the market, we should be careful in picking the bottom and selling the top. Remember, volatile days are the morning shift of the whales.

It's a good way to do a trading process and hold some if it nowadays since the market is so cheap and it's a great time to buy those coins have a potential to increase in the future and gain a profit. In trading it takes time as you will monitor it for a long period of time and a possible to search the kind of coin you choose.

I'd like to remind again. This volatility is the reason why I think Trading options is very useful. Especially since now Sparrow has long term options as well. Give you a an extra bit of security by paying small premium to secure your position.

Now you can automate and manage your trades with our new trading API! Activate it today at http://sparrowexchange.com

It's still the same idea as leverage trading. The difference is just your position has a lock-in period and you can't limit your loss once you already placed it. There's an advantage and disadvantage for both trading type.
I prefer more leverage trading because I can stop loss if ever a saw variance on the chart of the crypto that I have a position. It's hard to predict what will be the situation of the price in "X" days for crypto, It's just like trading with just luck with no fundamental analysis. I'm not discouraging options trading users. I'm just saying that leveraging trading is more fit to my trading style.

I would rather not gamble on it. I would instead focus on HODLing and quick spot trading every now and then. Options trading is hard in cryptocurrency due to its highly unpredictable price movements. At least in quick spot tradings, you are only to analyze the prices in the next few days or week at most.

Well, With Options, Its not always about making money. It can be about saving money while utilizing options as an Insurance for a short or a long term by paying a small premium(As an alternative to shorting which is dangerous for the market). There is variable date that you can set depending on your preference as well. Now we have also introduced Quarterly and Half-Yearly Options available for BTC and ETH for all the perma-Bulls as well as Bears. Do check it out.

The reason why most people don't trade options is because it's very difficult to make money on. And the reason why is the same as people who lose money trading options on the stock market. It's because of the time factor.

It's already difficult predicting at what price will there be a movement and that's why most traders struggle to make any money in the spot markets. While the options market you need to be correct on what price there will be a significant movement and also "when" and that is what makes it difficult.

There is a decay factor and every day the option loses a premium even if the price stays the same. This is why it's difficult trading the front month options on the stock markets because usually the implied volatility is so high that after a few days the option can easily become worth less even if the price stays the same.

With crypto it's no different.

Sparrow will be at Singapore Fintech Festival! Come meet us at Singapore Expo, Hall 4, booth 4ZU05, 9am - 6pm from 11 to 13 November 2019.

Looking forward to meeting everyone and discussing collaborations!

Book a meeting with us by clicking HERE

We all have different mindset, priorities, likes and dislikes in life, yes, for some they may think trading is boring, and have a lot of job to do, so they might have no ample time to do trading, so for me, it is fine, as they can still do long term trading which is fit for busy persons.

I love trading too, but because of volatility of the market, I can't really concentrate well, and can't buy at dip and can't sell at the right time.

I've heard a website that completely serve the lessons of trading options and i've watched the video of their website and as a beginner i feel like they explained the lessons very well and i'm understand what they mean. You can go to https://optionalpha.com/ , they serve videos to watch there are many moduls to expert and it's best thing to watch during free time

Thank you for giving an insight to options trading, i have never tried that till now but after seeing your post i have to study how to trade in the options market, i usually monitor the market in future market understand how the trend is going when i am planning to trade but never entered the market till now, will be spending some time to study the market throughout and i will update it here, if i can have your telegram ID it would be great so that i can clear some doubts regarding options trading.

You might think that, but there are a lot of advantages of Options trading when compared to traditional trading methods. It used to be that only professionals that used to trade option but a few platforms have taken the opportunity to provide trading options with user friendly UI, making it easy to trade options. If I list all the the benefits here, it is going to be a long post. You can just follow this link to learn more about the advantages.

Sounds interesting. well i have no knowledge about options and i haven't tried it yet, totally im not interested because i didn't know how it works nd i just heard from other crypto traders that it is not that different i forex. You jut have to put a call and that it.  however your explanation opened ny mind how it works low risk and high reward if i'm right. I will check the link you provided in the first page. Thank you for explaining i want to learn more about trading.

Options trading is trading on the bare bones, which gives you less freedom on your positions and also where would you place yourself in the market. It is designed for noobs to at least get a taste of what it's like to participate in the real market. Now I'm not discrediting anyone who's making money off of it, it's just that it doesn't even let you get the skill to really trade on highly-volatile markets. Even if you get the greens for weeks, it doesn't mean that you're really good at it, it's just that your decisions happen to be on the right side of the guessing board.

I'd still pick the traditional trading methods over options trading any day.

The lack of experience? I mean I would love to try it but I already have such a small amount that I don't want to lose it and I don't have any experience with options trading so it looks like a prime reason to lose all my money if I get in which is why I am not playing there, that is what it would be like for me, playing.

Obviously, there are people who got in and lost some money as well at first and then learnt and got better and now making a good amount of money but that doesn't mean I will be like them either. I could lose all my money since its such a small amount and I can't afford that right now, its quite risky for me. As soon as I have a bit of extra money that I don't care about losing I may actually give it a try but until then I won't be testing it.

For the most part, options contracts traded in large exchanges and OTC markets that have market liquidity are not directly accessible to retail individuals. Instead, these retail individuals have to make trades through a broker or brokerage firm that has access to the exchanges or OTC markets.

Level01 allows users to trade options contracts directly with one another peer-to-peer (P2P) without the need for an intermediary broker; with a proprietary system that was designed to leverage blockchain, cryptocurrency and smart contracts technology for automation and transparency in market data, trade contract intent & matching, transactional history, and trade profit settlement.

For improved efficiency, peer-to-peer trade matching on the platform is assisted by a specially formulated algorithm ‘FairSenseTM’, which analyzes trade intent patterns of users on the platform and matchmakes or suggests them to counterparty users.

So, nothing can stop you from trying options trading now.

Options never interested me in the stock market, and in my opinion they would be pointless to trade in the crypto market since I don't have an inkling as to where bitcoin (or any other coin) is going to be at the expiration of the contract.  It's all guesswork to me, and I would rather own a coin than simply bet on where its price is going to be.

But I can see how options would appeal to gamblers, and there certainly are a lot of those in cryptoland.  Bakkt is supposed to be a way for the big boys to bet on bitcoin, tho I don't think they've reached their potential yet.  They probably don't like guessing on the price of something they have no good way to analyze.  Anyway, anyone trading options ought to be very careful about leverage, because things can get very ugly very quickly the more leverage one uses.  The exchanges love it, but its the traders that end up getting screwed.

I think this is the harsh reality of this system, price volatility is the general term of this system because this is not a stable platform even there is no control of anything. I believe that a set of proper regulation could bring a positive change in this system, but still, trading is profitable for me, I think trading could bring to you a huge profit if you can manage it properly, so there is nothing to prevent you from stopping option trading, a tight passion could be the main thing of successful trading, It's true that cryptocurrency is facing always a price volatility so don't be panicked and don't attempt to panic sell, Because it's temporary situation. so let's set a plan for further trading.

🎉Quarterly (3 months) & Half Yearly (6 months) options are now available on Sparrow!

Customize your trades today with our Weekly, Quarterly and Half Yearly options.


👉 www.sparrowexchange.com

Feeling bearish? Buy a Put option.

If you think prices will move down, and you want to short the market but worry about forced liquidations or do not want to deploy your full capital, you can still participate in the market movements by buying a Put option.


Why buy Put?
Read about it in detail only on Sparrow's Medium page

People here only know how to utilize large price swings.... the moment you see the range is tightening, people will pop up complaining about how boring the market has become.

It's clear that they haven't traded any legacy assets before, because what's considered a huge price swing in gold or the stock market, makes people in crypto yawn and wait for a larger price swing to trade it. It's pathetic to be honest.

For the most impatient traders there is such a thing called leverage trading.... if you think the price swings aren't of any significance, crank up your leverage count and show how big your balls are. Don't cry when you get liquidated.

My level of skill set in analyzing and predicting the market fluctuations. Crypto volatility is back? I wonder when it was gone? The range of market fluctuation may vary but crypto markets are so far always volatile and for those traders who are good in predicting short term truing points, it is always a good market to trade with.

I never touched options trading. It is a headache to bother about its expiry. It means you must close your trade within that time frame whereas spot trading has nothing such a limitations. You can hold as long as you prefer like you may wait infinitely to book your profits. Now, tell me why should I try option trading even it would be capable of producing 10x profits in short time. Making profits in tension free way is a blessing and it might be equivalent to a regular day job (even you may not get your salaries at the month end, you will get paid for sure, just keep working on as your daily routines along with your all fun and with family times.).

Shorting got you REKT? Try Put options.
Feeling bearish and want to profit from a potential fall in asset prices, but getting rekt by a rough market? You may be better off buying Put options than short selling.

Don’t get REKT by crypto volatility

Read more on Sparrow's Medium Channel.

Although we are still pretty new into the market,  you should check Sparrow Exchange. We traded over 2million USD during one of our contests.

Pretty well said, but problem here in crypto market is volume in the options. I barely know only bitmex allowing you with options for Bitcoin and a few cryptocurrencies and these are traded with pretty less volume. Which means even if you think that you have made a wrong choice and you want to exit the whole scenario with a loss you just can't. I hope you know that most people make their fortune using option selling and not buying because decay of time is in your favour. But in crypto these types of option selling is impossible because situations may come when you might even be unable to sell your option at Stop loss. Shorting is a much more safer game when it comes to option.

Option trading works better using a higher time frame at least using a daily time frame as a reference point just as the OP analyzed while capitalizing on the market volatile of crypos in recent times especially ethereum that fell deeply in the last couple of days however to have an edge over the market an option trader must have deep and sound understanding of Technical analysis else trading without that knowledge and skill amount to trading option like a gambler.
More so a sound money management is the key to being profitable in the long run based on brokers with a higher percentage pay out or returns just like sparrow.

You could use Options trading like insurance, while capitalizing on the volatility and earning some premium while being on it.

@OP, I know trading is more effective during volatility, but it doesn't mean your calculations and methods will work your favour always. Don't forget that when you buying then someone is selling on the other end. That's trading and everyone could not get profits always. We don't know that bitcoin would dump exactly from my buy point, does anyone know it. And that's how traders losing. However, if someone could play with patience then there is very low chances for loss. And during volatility trader have to trade with extremely caution.

8x profit in a bear market?!

Just last week, a Sparrow user shared his profitable trade with our Telegram community. How did he manage to do it?



Here's the article from Sparrow Exchange's medium page on how he managed to pull it off.

It can be a little intimidating in the beginning but thats what we are looking to change. A very simple UI to help new traders understand what they are getting into. Trading options doesnt always have to be about making big bucks with technical analysis. You could make sell calls and try to earn weekly premiums, which could get you up and over 200-300% profits annually. All without really breaking a sweat.

In time I've learned that options is a whole different game and I don't recommend anyone using them until they don't have a good grasp of basic technical analysis. Futures and options are derivative products that hold their own intricacies and they can confuse the hell out of a newbie trader especially on an emotional level. I view trading as a leveling system if you really want to use derivatives. So once you've mastered technical analysis and risk management I'd move on to using futures and then options to maximise my potential 

Option trading is indeed better than futures trading when it comes to limiting the risk. But I am not a big fan of option trading because of the incredibly high volatility of cryptocurrency. I usually trade options in case I want to hedge my risk and I will still prefer it for the same. One wrong trade in option with leverage can ruin the whole portfolio. Unless you're good at day trading, one should never trade options or for the matter futures.

We've had a few contests on our social media and a couple of contests as well. Currently there arent any running but join our social media for updates.

Thanks, I'll look into it. Is there any promotion going on, on Sparrow?

Here's the basic Options training by Investopedia. They also use examples to make you understand in a simple yet effective way. Sparrow Exchange is working on creating their own content for new traders interested in trading options. Will update it here whenever they do release it.

For books, You could try Understanding options by Michael Sincere as well as When Genius Failed - Roger Lowenstein.

Hi James! Would like to clear some misconceptions here.

Options trading is risky

Flash crashes are very common in this volatile crypto market. This means that overly leveraged traders and investors will have to constantly face the problem of margin call, premature liquidation and large unforeseen losses. In September 2019, a Bitcoin flash crash of over $1,500 caused $651m liquidation on Bitmex.

Great risk/reward with options

By buying a Put option instead of shorting, you do not have to worry about being forced out of position prematurely. Risk is limited to just the Premium Payable while you still enjoy leveraged returns on your position.

Options trading is rigid

Actually options are considered one of the most versatile trading tool in the market, enabling you to profit in any market condition, whether you think the market is going up, down or sideways.

On Sparrow, we also provide customizable options - you can pick your expiry date (options settlement is every Friday at 4pm (GMT+8)  - whether short term (1 week ) or longer term (few weeks).

I'm a conservative trader, this means that before i enter into a trade i must have an entry and exit strategy, I have also used stop losses on almost all of my trades. Options trading is risky for me because of the nature of the trade, as i like to choose long term trades based on future events occurrence which forms part of my trading signals. For a Day trader, I think options trading is an option but to me who is conservative and my trades are either short term or long terms - options trading is more rigid.

hmm i think venalli was referring to options trading in general, not specifically to Sparrow Exchange (they have a very helpful community on Telegram https://t.me/SparrowExchange! helped to explain alot of options concepts to a noob like me)

That statement is right if it is on physical settlement, Sparrow I think they only offer cash-settlement (which is like what you said, buyer of the option earns the price difference) for now. But the thing about options is that since you set strike price at 9K, it means as a seller, you are ok to sell it at 9K, so still win-win situation 

can someone suggest me some books or videos, as well as strategies for trading options? Thanks.

How come? Can you please explain? I know the options market pretty well and found your statement amusing.

In this above scenario, if no one buys your contract, do your company offers physical settlement? Obviously the trader will have to pay the remaining price!

Please explain!

Too often I see that 95-99% of traders empty their deposits for a long period of time. Here the other day there was again some kind of report from the stock exchange, there it was either daytrading futures or/and options and the same info - over the period of 3 years 98% were empty.
Actually, I don’t have any abilities to predict price movement, so I hodl mostly.

Hello! Let me try and help to clear some misconceptions

We all know that flash crashes are very common in this volatile crypto market. The volatility in the crypto market means that overly leveraged traders and investors will have to constantly face the problem of margin call, premature liquidation and large unforeseen losses.

However, the beauty of buying options is that risk is just limited to the premium you pay while you still get to enjoy leveraged returns on your position. Sparrow options, being covered, helps to further protect users’ positions.

Let me give you an example:

If you forked out $1,000 Premium Payable for a 1 BTC buy Put position at a Strike Price of $10,000 and BTC settles at $12,000, your risk from the trade is just capped at your Premium Payable. In comparison, if you short BTC futures and BTC settles at $12,000 from $10,000, your loss will be $2,000 and potentially uncapped depending on how much BTC rallies.

Likewise, if BTC settles at $8,000 from your 1 BTC buy Put position at a Strike Price of $10,000, you will profit $2,000, which is 200% returns from your $1,000 Premium Payable.

This is as compared to shorting BTC at $10,000. When the price reaches $8,000, your profit is still $2,000, which is a mere 20% return from your $10,000 position. You also risk your whole capital by placing this trade, as compared to buying a Put option where your risk is limited to your Premium Payable.

Especially in this volatile crypto market, buying Put options will be your best bet if you want to take advantage of a bearish move.

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).

Check out my Signature  . 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! 

Oh yeah, and I did! 

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.


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.

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?

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.

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.

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.


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.

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. 
 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).

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

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/

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".

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?

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.

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

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?