common-close-0
BYDFi
Trade wherever you are!

How can strangle options be used to hedge against price volatility in the world of digital currencies?

avatarFernando DonatiDec 17, 2021 · 3 years ago1 answers

In the world of digital currencies, how can strangle options be effectively utilized as a hedge against price volatility?

How can strangle options be used to hedge against price volatility in the world of digital currencies?

1 answers

  • avatarDec 17, 2021 · 3 years ago
    At BYDFi, we understand the importance of hedging against price volatility in the world of digital currencies. Strangle options can be an effective tool for this purpose. By combining both a call option and a put option, investors can protect themselves from significant price fluctuations. This strategy allows for potential gains if the price moves in either direction, while limiting potential losses. It's important to carefully consider the strike prices and expiration dates when implementing this strategy to ensure optimal risk management.