How can strangle options spreads be used to hedge against price volatility in the cryptocurrency industry?

1 answers

• Nov 24, 2021 · 3 years ago
  Strangle options spreads can be a valuable tool for hedging against price volatility in the cryptocurrency industry. This strategy involves buying both a call option and a put option with different strike prices. The call option allows the holder to profit from price increases, while the put option allows the holder to profit from price decreases. By combining these two options, investors can protect themselves from large price swings in either direction. It is important to note that this strategy requires careful consideration of the market conditions and the selection of appropriate strike prices to ensure its effectiveness. Additionally, it is advisable to consult with a financial advisor or conduct thorough research before implementing this strategy in the cryptocurrency industry.
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