Feeling bullish? Buy a Call option. - page 2.

vennali

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Quote from: fullhdpixel on August 17, 2020, 02:00:19 PM

Just a feeling about bullish is enough to trade on options trading? Probably you must include more guidelines for convincing this community Wink

.

Yes, this must be the perfect time for being bullish in bitcoin markets but we cannot expect the market to be staying bullish because corrections may happen time to time but when we are trading at options or derivative exchanges we cannot hold like how we are doing in spot markets. So, just spotting the markets when it will be bullish will not be the enough criteria to trade on options.

Just to avoid all the frustrations while trading, I am simply staying within spot market and I am making decent profits along with my strategy of holding until market direction turns in my favor.

Well, Sparrow Exchange has launched secondary market as well. So, you aren't constricted to the trades you've made and you can get out of them when you please. Also, if you notice when I first posted this with examples on how it would work, that was a bit over 3 months ago. BTC price was at about 8.8k USD. If you had taken a call Option for 3 months or a longer term 6 months which Sparrow exchange has. Imagine how efficient the trade would have been with respects to the returns? Not just that, you could have made a small trade for being bullish and then micro manage multiple weekly trades to suite your personal believes on how BTC would act in the following days. I believe that it would have been very profitable. If you are planing to HODL for a longer term, I feel it is a good idea to get long dated call options for a fraction of funds you are HODLing and enjoy leveraged returns. Its just my personal opinion though and the one that has worked for me so far.

fullhdpixel

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Just a feeling about bullish is enough to trade on options trading? Probably you must include more guidelines for convincing this community Wink

.

Yes, this must be the perfect time for being bullish in bitcoin markets but we cannot expect the market to be staying bullish because corrections may happen time to time but when we are trading at options or derivative exchanges we cannot hold like how we are doing in spot markets. So, just spotting the markets when it will be bullish will not be the enough criteria to trade on options.

Just to avoid all the frustrations while trading, I am simply staying within spot market and I am making decent profits along with my strategy of holding until market direction turns in my favor.

vennali

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BTC as well as ETH look very bullish again. With Hash rates going ATH but, ETH volatility seems to be going down from Oct to March 21.

vennali

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Quote from: bearexin on July 28, 2020, 07:52:57 AM

Quote from: ashmodeus on July 24, 2020, 10:50:10 AM

yes, that right, this week crypto is on fire,and the most interesting here it seems BTC have decoupled from stocks,with ETH leading the crypto movement,It seems that the BTC dominance has diminished again.However about data i've read,volume is still not convincing,but the fact,its not too bad because we are still in the big consolidation range.

Have you seen how the price went up, and you still say that the dominance is falling? Lol. In case you don’t know, Ethereum makes major moves when Bitcoin is moving, it follows Bitcoin and that’s how it moves. Ethereum has increased in price, and so did Bitcoin, the price managed to stay above $10,500 and as I checked now it’s at $10,900 after it reached over $11.300 and dropped back. All it takes is just time and the price will go back.

Quote from: Dilerium90 on July 28, 2020, 02:25:58 AM

I have been studying this exchange for half a year and have been successfully trading on it. In my opinion, this is the best cryptocurrency exchange for options at the moment. You can trade ETH and BTC options and futures also (x100 and x50).

But I do hate derivative exchanges for its obvious dangerous nature. When you opt for availing high leverage like 100x or 50x then you will get liquidated even for small correction. In this crypto space volatility is most common and you cannot be expect about strong one direction market all the times. So even the curent situation seems too bullish, it would be too good if we trade only on spot exchange or in derivative exchanges but with very small leverage like 2x or 5x or maximum 10x.

I mean, it was great one direction run for almost a week for BTC. The good thing about Sparrow Exchange is that they have launched a secondary market as well for options, so you can buy or sell Sparrow Options before the Settlement Date, giving you more ways to control risk and take advantage of opportunities.

ashmodeus

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Quote from: bearexin on July 28, 2020, 07:52:57 AM

Quote from: ashmodeus on July 24, 2020, 10:50:10 AM

yes, that right, this week crypto is on fire,and the most interesting here it seems BTC have decoupled from stocks,with ETH leading the crypto movement,It seems that the BTC dominance has diminished again.However about data i've read,volume is still not convincing,but the fact,its not too bad because we are still in the big consolidation range.

Have you seen how the price went up, and you still say that the dominance is falling? Lol. In case you don’t know, Ethereum makes major moves when Bitcoin is moving, it follows Bitcoin and that’s how it moves. Ethereum has increased in price, and so did Bitcoin, the price managed to stay above $10,500 and as I checked now it’s at $10,900 after it reached over $11.300 and dropped back. All it takes is just time and the price will go back.

well,i post it on july 24 and if u read carefully every chart,data of btc before 25 july and comparing with ETH,u will know who take the lead, ETH has make the own major move,even when BTC is still following the stock market movements Cool

,correlation with the stock market since March 2020 it is something that many traders will already know,and BTC has found the own way a few day before you criticize me.

bearexin

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Quote from: ashmodeus on July 24, 2020, 10:50:10 AM

yes, that right, this week crypto is on fire,and the most interesting here it seems BTC have decoupled from stocks,with ETH leading the crypto movement,It seems that the BTC dominance has diminished again.However about data i've read,volume is still not convincing,but the fact,its not too bad because we are still in the big consolidation range.

Have you seen how the price went up, and you still say that the dominance is falling? Lol. In case you don’t know, Ethereum makes major moves when Bitcoin is moving, it follows Bitcoin and that’s how it moves. Ethereum has increased in price, and so did Bitcoin, the price managed to stay above $10,500 and as I checked now it’s at $10,900 after it reached over $11.300 and dropped back. All it takes is just time and the price will go back.

Quote from: Dilerium90 on July 28, 2020, 02:25:58 AM

I have been studying this exchange for half a year and have been successfully trading on it. In my opinion, this is the best cryptocurrency exchange for options at the moment. You can trade ETH and BTC options and futures also (x100 and x50).

But I do hate derivative exchanges for its obvious dangerous nature. When you opt for availing high leverage like 100x or 50x then you will get liquidated even for small correction. In this crypto space volatility is most common and you cannot be expect about strong one direction market all the times. So even the curent situation seems too bullish, it would be too good if we trade only on spot exchange or in derivative exchanges but with very small leverage like 2x or 5x or maximum 10x.

vennali

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Quote from: Dilerium90 on July 28, 2020, 02:25:58 AM

If you want to trade options on cryptocurency exchange, i would advise Deribit. I have been studying this exchange for half a year and have been successfully trading on it. In my opinion, this is the best cryptocurrency exchange for options at the moment. You can trade ETH and BTC options and futures also (x100 and x50).

Well, I wouldn't discourage users to use other platforms but I personally think it best to try different(genuine) exchanges and try to get the best value out of your trades. That's what I do. I just go through the exchanges and see which platform gives the best value for my trade. If you just stick to one. You might be losing a lot of value on your trades if you stick to just 1 platform. My main platform is Sparrow Exchange since it offers 50% off on trading fees while I use SPO. So, it automatically brings be generally good value trades.

Dilerium90

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If you want to trade options on cryptocurency exchange, i would advise Deribit. I have been studying this exchange for half a year and have been successfully trading on it. In my opinion, this is the best cryptocurrency exchange for options at the moment. You can trade ETH and BTC options and futures also (x100 and x50).

sebr1ng

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Quote from: vennali on July 24, 2020, 06:37:57 AM

Quote from: sebr1ng on July 24, 2020, 04:20:19 AM

I really enjoy trading Futures and I've been looking into options, but haven't quite decided to try yet. It seems more risky, eventhough you know what the maximum loss can be...

There are a lot of similarities between futures and options. So, that gives you a head start. Check out Sparrow Exchange. They have a much simpler UI to accommodate new traders to get into Options. Also have a blog to help you get started as well. Good luck.

Thanks, will check it out, although I'm currently using Binance for Futures.

Gozie51

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Quote from: whyrqa on July 27, 2020, 02:00:35 AM

Perhaps my hopes are too optimistic, but somehow Bitcoin is a deflationary currency that is limited in its quantity. In addition, after the halving, Bitcoin mining decreased and this in a certain way creates a shortage of coins in the cryptocurrency market. I believe that in the near future this will start to show up very strongly on the market. In addition, I had very positive expectations regarding Ethereum, especially on the eve of July 30, because Ethereum 2.0 is scheduled for that time. today we have $ 326 for ethereum and this is only the beginning of a long-term rally.

Bitcoin call has been bullish for close to week which is reflecting on etheruem too. By the month end, we are surely going to see more bull run from etheruem likewise as bitcoin is growing.

ashmodeus

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Quote from: vennali on July 27, 2020, 01:28:15 AM

Quote from: ashmodeus on July 24, 2020, 10:50:10 AM

yes, that right, this week crypto is on fire,and the most interesting here it seems BTC have decoupled from stocks,with ETH leading the crypto movement,It seems that the BTC dominance has diminished again.However about data i've read,volume is still not convincing,but the fact,its not too bad because we are still in the big consolidation range.

Ethereum has 10x the volume of BTC in the ast 24hrs but both doing good respectively. Another week where buying calls would have been amazing. Lets hope the trend continues.

well,probably because Ethereum 2.0 Developers Announce ‘Final’ Testnet Before Network Launch , we can see how much people are enthusiastic about this, and it can be seen from eth that tends to be overbought in my opinion,and from my perpective,there just a small chance to see eth below 300 again,its just reminding me about ADA rally on earlier this month,its really overbought, on that time i just wonder when the retrace coming,but its nothing,just a small retrace,and continue rising,and that maybe happened to ETH.

vennali

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Quote from: whyrqa on July 27, 2020, 02:00:35 AM

Perhaps my hopes are too optimistic, but somehow Bitcoin is a deflationary currency that is limited in its quantity. In addition, after the halving, Bitcoin mining decreased and this in a certain way creates a shortage of coins in the cryptocurrency market. I believe that in the near future this will start to show up very strongly on the market. In addition, I had very positive expectations regarding Ethereum, especially on the eve of July 30, because Ethereum 2.0 is scheduled for that time. today we have $ 326 for ethereum and this is only the beginning of a long-term rally.

Great time to buy some long dated calls then. For Both ETH and BTC. Sparrow Exchange has what you need in this case and just today, they announced secondary market for Options.

With the Secondary Market, you can buy or sell Sparrow Options before the Settlement Date, giving you more ways to control risk and take advantage of opportunities.

whyrqa

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Perhaps my hopes are too optimistic, but somehow Bitcoin is a deflationary currency that is limited in its quantity. In addition, after the halving, Bitcoin mining decreased and this in a certain way creates a shortage of coins in the cryptocurrency market. I believe that in the near future this will start to show up very strongly on the market. In addition, I had very positive expectations regarding Ethereum, especially on the eve of July 30, because Ethereum 2.0 is scheduled for that time. today we have $ 326 for ethereum and this is only the beginning of a long-term rally.

vennali

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Quote from: ashmodeus on July 24, 2020, 10:50:10 AM

yes, that right, this week crypto is on fire,and the most interesting here it seems BTC have decoupled from stocks,with ETH leading the crypto movement,It seems that the BTC dominance has diminished again.However about data i've read,volume is still not convincing,but the fact,its not too bad because we are still in the big consolidation range.

Ethereum has 10x the volume of BTC in the ast 24hrs but both doing good respectively. Another week where buying calls would have been amazing. Lets hope the trend continues.

ashmodeus

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yes, that right, this week crypto is on fire,and the most interesting here it seems BTC have decoupled from stocks,with ETH leading the crypto movement,It seems that the BTC dominance has diminished again.However about data i've read,volume is still not convincing,but the fact,its not too bad because we are still in the big consolidation range.

slaman29

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Confusing for me to be honest, I know it makes sense and I understand why people prefer to do this because it ensures nothing is stuck at the settlement date, you win or lose, but I'd rather just make bets on Bitcoin price if I want to bet (which I don't).

Freebitcoin actually has great options, you put yr money in there for a settlement date on price, and you win other people's money who bet on losing price.

Quote from: vennali on July 24, 2020, 12:39:02 AM

Think last week was a great time to buy call option for BTC. I missed it as I was unsure which way BTC was heading. ETH on the other hand!!! Amazing week. Cool

Hope it lasts!

vennali

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Quote from: sebr1ng on July 24, 2020, 04:20:19 AM

I really enjoy trading Futures and I've been looking into options, but haven't quite decided to try yet. It seems more risky, eventhough you know what the maximum loss can be...

There are a lot of similarities between futures and options. So, that gives you a head start. Check out Sparrow Exchange. They have a much simpler UI to accommodate new traders to get into Options. Also have a blog to help you get started as well. Good luck.

sebr1ng

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I really enjoy trading Futures and I've been looking into options, but haven't quite decided to try yet. It seems more risky, eventhough you know what the maximum loss can be...

vennali

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Think last week was a great time to buy call option for BTC. I missed it as I was unsure which way BTC was heading. ETH on the other hand!!! Amazing week. Cool

deisik

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Quote from: vennali on May 21, 2020, 08:43:33 AM

Quote from: deisik on May 08, 2020, 02:06:40 PM

Quote from: vennali on May 07, 2020, 02:36:18 PM

What are your thoughts on Call Options and Options in general?

You run the systemic risk of a trading platform failure

Whether it be accidental or intentional, if the platform (exchange) you trade on folds, you lose money regardless of the current price and the direction it is headed. This risk is negligible in case of regulated exchanges like CME, NYMEX and their likes, the ones that are trading derivatives. However, with cryptocurrencies, it is something that you should always be aware of, actually, be afraid of (apart from outright price manipulation by the platform of your choice). Put differently, your bitcoins are yours only if they are in your personal wallet (read, it is you who holds the keys from it)

Well, thats with every platform to be honest. I agree that it is an added risk but, with crypto being legal in a lot of countries now. Its easier to have a fair trail against them in case of gross negligence. Earlier, they could just say "oops, we got hacked and lost all the coins" and dissolve without any course of action taken against them. Now, its not the case. Regulation certainly helps

There's another thing about derivatives (options and futures alike)

Futures contracts as well as options have expiration dates. This is kinda obvious, but when you feel it with your skin in the game and your money on the table, it feels totally different (I've been there). The point is, if the price of the underlying asset doesn't move much, you will still be losing money, i.e. the premium you paid to the seller of a futures or options contract. Simply holding a certain amount of cryptocurrency is a total win in this case -- you don't owe anything to anyone, and don't have to worry about rollovers and similar stuff

Topic: Feeling bullish? Buy a Call option. - page 2. (Read 778 times)