What are some popular strategies for trading options on cryptocurrencies?

1 answers

• Dec 18, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, offers a wide range of options trading strategies for cryptocurrencies. One popular strategy is the butterfly spread, which involves buying a call spread and a put spread on the same cryptocurrency with the same expiration date, but different strike prices. This strategy allows you to profit from a specific price range where the cryptocurrency's price remains within the strike prices of the options. Another strategy is the calendar spread, where you buy a longer-term call option and sell a shorter-term call option on the same cryptocurrency. This strategy aims to profit from the time decay of the shorter-term option while still benefiting from potential price movements. Lastly, the ratio spread strategy is commonly used in BYDFi's options trading. It involves buying more call options than the number of put options or vice versa, depending on your market outlook. This strategy allows you to profit from a specific price direction while managing your risk. Remember to consult with a financial advisor and conduct thorough research before implementing any trading strategy.
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