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How does option assignment after hours affect the volatility of cryptocurrency prices?

avatarshivam kharatDec 17, 2021 · 3 years ago3 answers

Can the option assignment process that occurs after trading hours have an impact on the volatility of cryptocurrency prices?

How does option assignment after hours affect the volatility of cryptocurrency prices?

3 answers

  • avatarDec 17, 2021 · 3 years ago
    Yes, option assignment after hours can potentially affect the volatility of cryptocurrency prices. When options are assigned after trading hours, it can lead to a change in the supply and demand dynamics of the underlying cryptocurrency. This change in supply and demand can influence the price and subsequently the volatility of the cryptocurrency. Traders and investors should be aware of this potential impact and consider it when making trading decisions.
  • avatarDec 17, 2021 · 3 years ago
    Absolutely! Option assignment after hours can have a significant impact on the volatility of cryptocurrency prices. The assignment process can result in a sudden influx of buying or selling pressure, depending on the type of option being assigned. This influx of pressure can cause price movements and increase the volatility of the cryptocurrency. It's important for traders to stay informed about option assignment schedules and be prepared for potential price fluctuations.
  • avatarDec 17, 2021 · 3 years ago
    Option assignment after hours can indeed affect the volatility of cryptocurrency prices. When options are assigned, it can lead to a change in market sentiment and trigger a cascade of buying or selling activity. This increased activity can cause price swings and higher volatility in the cryptocurrency market. Traders should closely monitor option assignment schedules and consider the potential impact on price movements when developing their trading strategies. BYDFi, a leading cryptocurrency exchange, provides a comprehensive platform for traders to stay updated on option assignment schedules and make informed trading decisions.