OptionsTrading
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#TradeAndWin #OptionsTrading Options Trading & Greeks
Options contracts fall into two main categories: calls and puts. A call option allows its holder to buy the underlying asset at the strike price within a limited timeframe, while a put option enables its holder to sell the underlying asset at the strike price within a limited time frame. An option's current market price is known as its premium, which its seller (known as a writer) receives as income.
The Greeks — Delta, Gamma, Theta and Vega — are financial calculations that measure an option's sensitivity to specific parameters. Delta (Δ) shows the rate of change between an option's price and a $1 movement in the underlying asset's price. Gamma (Γ) measures the rate of change of an options delta, based on a $1 change in the underlying asset's price.
Theta (θ) measures the sensitivity of an option's price relative to the time it has left to mature (or expire). Vega (ν) measures an option's price sensitivity based on a 1% move in implied volatility
You may want to lock in a specific price for an underlying asset to better plan your future financial position. You may also want to buy or sell the underlying asset at an advantageous price based on a predicted price movement.
Options contracts fall into two main categories: calls and puts. A call option allows its holder to buy the underlying asset at the strike price within a limited timeframe, while a put option enables its holder to sell the underlying asset at the strike price within a limited time frame. An option's current market price is known as its premium, which its seller (known as a writer) receives as income.
The Greeks — Delta, Gamma, Theta and Vega — are financial calculations that measure an option's sensitivity to specific parameters. Delta (Δ) shows the rate of change between an option's price and a $1 movement in the underlying asset's price. Gamma (Γ) measures the rate of change of an options delta, based on a $1 change in the underlying asset's price.
Theta (θ) measures the sensitivity of an option's price relative to the time it has left to mature (or expire). Vega (ν) measures an option's price sensitivity based on a 1% move in implied volatility
You may want to lock in a specific price for an underlying asset to better plan your future financial position. You may also want to buy or sell the underlying asset at an advantageous price based on a predicted price movement.
$BTC 9.5Billion worth of BTC Options expired a few hours ago. How will these affect the market?
Since BTC is trading at the 70k zone during expiry, most of the calls will expire in the money. 😊
Since the strike price is lower than the actual market value, many will exercise the option and buy BTC at the strike price, generating profit. 😁 This is billions of buy orders in the next few hours or even days brother. 🥳 Cheers.
I will post update on the chart later today. Please follow me for daily honest updates.
DYOR. NFA
#TrendingTopic." #BTC🔥🔥🔥🔥 #OptionsTrading #HotTrends #Marketupdate
Since BTC is trading at the 70k zone during expiry, most of the calls will expire in the money. 😊
Since the strike price is lower than the actual market value, many will exercise the option and buy BTC at the strike price, generating profit. 😁 This is billions of buy orders in the next few hours or even days brother. 🥳 Cheers.
I will post update on the chart later today. Please follow me for daily honest updates.
DYOR. NFA
#TrendingTopic." #BTC🔥🔥🔥🔥 #OptionsTrading #HotTrends #Marketupdate
📈💰 Big News in the Crypto Market! 🚀🌟
The Securities and Exchange Commission (SEC) has just announced a delay in its decision regarding Cboe's proposal to list and trade options on Bitcoin ETFs. This delay, extending until late April, comes after Cboe initially applied for this listing back in January. The implications of this decision stretch far and wide, potentially impacting the future of cryptocurrency trading and investor strategies.
Options trading provides a crucial tool for investors to hedge risk, allowing parties to enter into contracts to buy or sell a financial product at a specific price within a specified time frame. While generally, options can be offered three days after an Exchange Traded Product (ETP) begins trading on national securities exchanges like Nasdaq or the New York Stock Exchange, different rules apply to ETPs holding commodities such as Bitcoin.
Cboe, however, is not alone in its pursuit of offering options on Bitcoin ETFs. Both the New York Stock Exchange (NYSE) and Nasdaq have filed proposals to list commodity-based trust shares and trade options specifically on BlackRock's iShares Bitcoin Trust ETF. Nasdaq has emphasized that options would provide investors with a lower-cost investing tool and a hedging vehicle.
The delay also affects proposed rule changes for all three exchanges, with a decision date set for late April. Grayscale, a major player in the crypto space, has reaffirmed its support for the NYSE proposed rule change, specifically urging the SEC to approve options on its fund, GBTC. Grayscale argues that if investing in options for shares of products holding derivatives of an asset is acceptable.
In light of these developments, it's crucial for investors and enthusiasts alike to stay informed about the evolving landscape of cryptocurrency regulation and investment opportunities. Keep an eye on how this decision unfolds and its potential impact on the market.
#CryptoMarket #SEC #BitcoinETF #OptionsTrading #InvestmentStrategy 📈💼
The Securities and Exchange Commission (SEC) has just announced a delay in its decision regarding Cboe's proposal to list and trade options on Bitcoin ETFs. This delay, extending until late April, comes after Cboe initially applied for this listing back in January. The implications of this decision stretch far and wide, potentially impacting the future of cryptocurrency trading and investor strategies.
Options trading provides a crucial tool for investors to hedge risk, allowing parties to enter into contracts to buy or sell a financial product at a specific price within a specified time frame. While generally, options can be offered three days after an Exchange Traded Product (ETP) begins trading on national securities exchanges like Nasdaq or the New York Stock Exchange, different rules apply to ETPs holding commodities such as Bitcoin.
Cboe, however, is not alone in its pursuit of offering options on Bitcoin ETFs. Both the New York Stock Exchange (NYSE) and Nasdaq have filed proposals to list commodity-based trust shares and trade options specifically on BlackRock's iShares Bitcoin Trust ETF. Nasdaq has emphasized that options would provide investors with a lower-cost investing tool and a hedging vehicle.
The delay also affects proposed rule changes for all three exchanges, with a decision date set for late April. Grayscale, a major player in the crypto space, has reaffirmed its support for the NYSE proposed rule change, specifically urging the SEC to approve options on its fund, GBTC. Grayscale argues that if investing in options for shares of products holding derivatives of an asset is acceptable.
In light of these developments, it's crucial for investors and enthusiasts alike to stay informed about the evolving landscape of cryptocurrency regulation and investment opportunities. Keep an eye on how this decision unfolds and its potential impact on the market.
#CryptoMarket #SEC #BitcoinETF #OptionsTrading #InvestmentStrategy 📈💼
BTC Above 100k by Year-End?
With BTC above 73k and pushing towards prior highs, the key 100k milestone is back in sight. For investors expecting a continued bull run post-U.S. election and through year-end, a simple binary call option offers attractive risk-reward.
The Trade
Buy a 100k BTC binary call option expiring on December 27 for just 8.5% (with BTC currently at 73k). Here’s how it works:
Cost: $8.5 upfront per $100 payout
Payout: If BTC >= 100k on Dec 27, you receive $100; if BTC < 100k, you receive 0.
Max Loss: Limited to the initial $8.5 premium
Max Return: 10.75x if BTC >= 100k at expiry
This trade is ideal if you believe the probability of BTC hitting 100k is higher than the market’s current implied 8.5% chance.
For those bullish on SOL, a year-end 275 binary call option is also available at 9% premium.
(not investment advice)
#BTCBreak71K #OptionsTrading
With BTC above 73k and pushing towards prior highs, the key 100k milestone is back in sight. For investors expecting a continued bull run post-U.S. election and through year-end, a simple binary call option offers attractive risk-reward.
The Trade
Buy a 100k BTC binary call option expiring on December 27 for just 8.5% (with BTC currently at 73k). Here’s how it works:
Cost: $8.5 upfront per $100 payout
Payout: If BTC >= 100k on Dec 27, you receive $100; if BTC < 100k, you receive 0.
Max Loss: Limited to the initial $8.5 premium
Max Return: 10.75x if BTC >= 100k at expiry
This trade is ideal if you believe the probability of BTC hitting 100k is higher than the market’s current implied 8.5% chance.
For those bullish on SOL, a year-end 275 binary call option is also available at 9% premium.
(not investment advice)
#BTCBreak71K #OptionsTrading
Spot Trading vs. Futures & Options: A Comprehensive Guide to Crypto Trading Strategies
Spot Trading vs. Futures & Options: A Comprehensive Guide to Crypto Trading Strategies
Cryptocurrency trading offers various strategies, each with its own risk, reward, and complexity. Spot trading, futures, and options are three of the most popular trading methods. Understanding their differences can help traders make informed decisions based on their risk tolerance, experience, and investment goals. This guide will explore the key differences between these strategies and highlight which one may suit your trading style.
1. What is Spot Trading?
Spot trading is the most straightforward form of trading. It involves buying or selling actual cryptocurrencies like Bitcoin, Ethereum, or other assets at the current market price. Once a trade is executed, you immediately own the cryptocurrency, which you can hold, sell, or transfer to another wallet.
Key Features of Spot Trading:
Ownership: You own the cryptocurrency directly. If you buy 1 Bitcoin, it’s yours to keep or sell at any time.Immediate Settlement: Transactions happen instantly. When you buy or sell, the trade is settled on the spot, hence the term "spot trading."No Leverage: Spot trading typically doesn't involve borrowing funds (leverage). You only trade with the capital you have.Lower Risk: The risk is limited to the value of the cryptocurrency you own. If the market falls, you only lose the value of that asset.
Example:
If you buy 1 Bitcoin for $40,000 in spot trading and hold it, you now own 1 Bitcoin. If the price rises to $50,000, you can sell it for a profit. However, if the price drops to $30,000, your loss is limited to the drop in value.
Who Should Consider Spot Trading?
Spot trading is ideal for beginners or those who prefer a simple and direct method of investing. It’s perfect for long-term investors who believe in the growth of specific cryptocurrencies and want to own the assets themselves.
2. What is Futures Trading?
Futures trading is more complex than spot trading. Instead of buying or selling a cryptocurrency outright, you are trading a contract that obligates you to buy or sell a specific asset at a future date for a predetermined price. This method involves speculation on price movements rather than ownership of the actual cryptocurrency.
One of the most significant features of futures trading is leverage. Leverage allows you to control a larger position than your actual capital, multiplying both potential profits and losses.
Key Features of Futures Trading:
No Ownership: You don’t own the cryptocurrency itself, only a contract tied to its future price.Leverage: Futures allow you to trade with borrowed funds, which can significantly increase your buying power but also magnify your risks.Higher Risk: Because of leverage, futures trading is considered high risk. If the market moves against you, your losses can exceed your initial investment.Obligation: Unlike options, futures require you to settle the contract when it expires or close the position beforehand.
Example:
If you believe Bitcoin will rise from $40,000 to $50,000, you can buy a futures contract. With leverage, you might control a position worth $100,000 with just $10,000. If Bitcoin rises to $50,000, you could see substantial gains. However, if the price drops instead, you could face significant losses.
Who Should Consider Futures Trading?
Futures trading is best for experienced traders comfortable with high risk and looking for short-term speculation. It’s not recommended for beginners due to the potential for large losses, especially when using high leverage.
3. What is Options Trading?
Options trading offers a unique balance of flexibility and risk control. Unlike futures, options give you the right, but not the obligation to buy or sell a cryptocurrency at a specific price within a certain period. This reduces risk because you’re not required to exercise the option if the market moves against you.
There are two types of options:
Call Option: The right to buy an asset at a certain price.Put Option: The right to sell an asset at a certain price.
Key Features of Options Trading:
Limited Risk: Your maximum loss is limited to the premium (price) you paid for the option. If the market moves against you, you can choose not to exercise the option.Leverage: Like futures, options offer leverage, but your risk is capped by the premium you pay.No Obligation: If your trade is not profitable, you don’t have to exercise the option, limiting your losses.Profit Potential: Options offer significant profit potential if the market moves in your favor, but with controlled risk.
Example:
If you buy a call option for Bitcoin with a strike price of $40,000, and the price rises to $50,000, you can exercise your option and profit from the price difference. If the price drops, your loss is limited to the premium paid for the option.
Who Should Consider Options Trading?
Options are suitable for traders who want flexibility and limited risk. They offer an excellent way to speculate on price movements while capping potential losses. This makes options attractive for both experienced traders and those looking to manage risk.
How Do These Differ from Spot Trading?
While spot trading involves the straightforward exchange of actual assets at current market prices, futures and options are both derivatives, meaning they derive their value from the underlying cryptocurrency but don’t involve direct ownership of the asset. Here’s how they differ from spot trading:
Conclusion: Which One is Right for You?
Spot Trading: Ideal for beginners and long-term investors who want to own cryptocurrency and avoid the complexities of leveraged trading. Risk is limited to the value of the assets you hold.Futures Trading: Best suited for experienced traders seeking high-risk, high-reward opportunities. The use of leverage can amplify both profits and losses, making futures a tool for short-term speculation.Options Trading: A good choice for traders looking for potential gains with limited downside risk. Options provide flexibility, allowing you to decide whether to exercise your right based on market conditions.
Each of these trading strategies offers unique advantages and risks. Whether you prefer the simplicity of spot trading, the high leverage of futures, or the flexibility of options, it’s essential to understand the mechanics and risks before diving in. Understanding these differences will empower you to make more informed decisions and choose the strategy that best aligns with your trading goals.
$BTC $ETH $BONK
#CryptoTrading #SpotVsFutures #OptionsTrading #CryptoMarketSurge #FinancialLeverage
Cryptocurrency trading offers various strategies, each with its own risk, reward, and complexity. Spot trading, futures, and options are three of the most popular trading methods. Understanding their differences can help traders make informed decisions based on their risk tolerance, experience, and investment goals. This guide will explore the key differences between these strategies and highlight which one may suit your trading style.
1. What is Spot Trading?
Spot trading is the most straightforward form of trading. It involves buying or selling actual cryptocurrencies like Bitcoin, Ethereum, or other assets at the current market price. Once a trade is executed, you immediately own the cryptocurrency, which you can hold, sell, or transfer to another wallet.
Key Features of Spot Trading:
Ownership: You own the cryptocurrency directly. If you buy 1 Bitcoin, it’s yours to keep or sell at any time.Immediate Settlement: Transactions happen instantly. When you buy or sell, the trade is settled on the spot, hence the term "spot trading."No Leverage: Spot trading typically doesn't involve borrowing funds (leverage). You only trade with the capital you have.Lower Risk: The risk is limited to the value of the cryptocurrency you own. If the market falls, you only lose the value of that asset.
Example:
If you buy 1 Bitcoin for $40,000 in spot trading and hold it, you now own 1 Bitcoin. If the price rises to $50,000, you can sell it for a profit. However, if the price drops to $30,000, your loss is limited to the drop in value.
Who Should Consider Spot Trading?
Spot trading is ideal for beginners or those who prefer a simple and direct method of investing. It’s perfect for long-term investors who believe in the growth of specific cryptocurrencies and want to own the assets themselves.
2. What is Futures Trading?
Futures trading is more complex than spot trading. Instead of buying or selling a cryptocurrency outright, you are trading a contract that obligates you to buy or sell a specific asset at a future date for a predetermined price. This method involves speculation on price movements rather than ownership of the actual cryptocurrency.
One of the most significant features of futures trading is leverage. Leverage allows you to control a larger position than your actual capital, multiplying both potential profits and losses.
Key Features of Futures Trading:
No Ownership: You don’t own the cryptocurrency itself, only a contract tied to its future price.Leverage: Futures allow you to trade with borrowed funds, which can significantly increase your buying power but also magnify your risks.Higher Risk: Because of leverage, futures trading is considered high risk. If the market moves against you, your losses can exceed your initial investment.Obligation: Unlike options, futures require you to settle the contract when it expires or close the position beforehand.
Example:
If you believe Bitcoin will rise from $40,000 to $50,000, you can buy a futures contract. With leverage, you might control a position worth $100,000 with just $10,000. If Bitcoin rises to $50,000, you could see substantial gains. However, if the price drops instead, you could face significant losses.
Who Should Consider Futures Trading?
Futures trading is best for experienced traders comfortable with high risk and looking for short-term speculation. It’s not recommended for beginners due to the potential for large losses, especially when using high leverage.
3. What is Options Trading?
Options trading offers a unique balance of flexibility and risk control. Unlike futures, options give you the right, but not the obligation to buy or sell a cryptocurrency at a specific price within a certain period. This reduces risk because you’re not required to exercise the option if the market moves against you.
There are two types of options:
Call Option: The right to buy an asset at a certain price.Put Option: The right to sell an asset at a certain price.
Key Features of Options Trading:
Limited Risk: Your maximum loss is limited to the premium (price) you paid for the option. If the market moves against you, you can choose not to exercise the option.Leverage: Like futures, options offer leverage, but your risk is capped by the premium you pay.No Obligation: If your trade is not profitable, you don’t have to exercise the option, limiting your losses.Profit Potential: Options offer significant profit potential if the market moves in your favor, but with controlled risk.
Example:
If you buy a call option for Bitcoin with a strike price of $40,000, and the price rises to $50,000, you can exercise your option and profit from the price difference. If the price drops, your loss is limited to the premium paid for the option.
Who Should Consider Options Trading?
Options are suitable for traders who want flexibility and limited risk. They offer an excellent way to speculate on price movements while capping potential losses. This makes options attractive for both experienced traders and those looking to manage risk.
How Do These Differ from Spot Trading?
While spot trading involves the straightforward exchange of actual assets at current market prices, futures and options are both derivatives, meaning they derive their value from the underlying cryptocurrency but don’t involve direct ownership of the asset. Here’s how they differ from spot trading:
Conclusion: Which One is Right for You?
Spot Trading: Ideal for beginners and long-term investors who want to own cryptocurrency and avoid the complexities of leveraged trading. Risk is limited to the value of the assets you hold.Futures Trading: Best suited for experienced traders seeking high-risk, high-reward opportunities. The use of leverage can amplify both profits and losses, making futures a tool for short-term speculation.Options Trading: A good choice for traders looking for potential gains with limited downside risk. Options provide flexibility, allowing you to decide whether to exercise your right based on market conditions.
Each of these trading strategies offers unique advantages and risks. Whether you prefer the simplicity of spot trading, the high leverage of futures, or the flexibility of options, it’s essential to understand the mechanics and risks before diving in. Understanding these differences will empower you to make more informed decisions and choose the strategy that best aligns with your trading goals.
$BTC $ETH $BONK
#CryptoTrading #SpotVsFutures #OptionsTrading #CryptoMarketSurge #FinancialLeverage
Bitcoin One Step Away From New Highs as U.S. Election Looms
Overview
1. In the market, BTC surged past 73k on Tuesday amid rising momentum in the U.S. election and strong inflows into Bitcoin spot ETF, bringing it within reach of its all-time high. Currently, BTC is priced around $72,000, with ETH trading near $2,650.
2. BTC DVOL has risen to 59, while ETH DVOL is close to 63. BTC front-end implied volatility surged in anticipation of the election, with an expected 7% move. Skew term structures have steepened, as front-end call skew reduces as the bullish outcome gets priced in, while longer-term call skew remains steady, indicating a positive outlook.
3. Regarding altcoin implied volatility, SOL’s weekly IV has increased to 83, DOGE’s weekly IV has surged to 130, and ORDI’s weekly IV is near 124. This week, the top 3 most popular altcoin options traded on Coincall were "Buy BNB-29NOV24-715-C," "Buy DOGE-29NOV24-0.200-C," and "Buy XRP-8NOV24-0.57-C."
4. This Friday, approximately $2.37 billion in crypto options are set to expire. Among them, BTC options have a notional value of $2.01 billion, with a Put/Call Ratio of 0.9 and a max pain price of $69,000; ETH options have a notional value of $353 million, with a Put/Call Ratio of 0.66 and a max pain price of $2,550.
Trade Idea
Trump's recent media appearances and endorsements from figures like Elon Musk have boosted bullish sentiment in BTC and altcoins like DOGE, which rose 18.5% this week. Consider buying call options on altcoins with low implied volatility and delayed price action to capitalize on this momentum.
Buy 10,000x XRP-8NOV24-0.55-C @ $0.0075
#OptionsTrading #Elections2024
Overview
1. In the market, BTC surged past 73k on Tuesday amid rising momentum in the U.S. election and strong inflows into Bitcoin spot ETF, bringing it within reach of its all-time high. Currently, BTC is priced around $72,000, with ETH trading near $2,650.
2. BTC DVOL has risen to 59, while ETH DVOL is close to 63. BTC front-end implied volatility surged in anticipation of the election, with an expected 7% move. Skew term structures have steepened, as front-end call skew reduces as the bullish outcome gets priced in, while longer-term call skew remains steady, indicating a positive outlook.
3. Regarding altcoin implied volatility, SOL’s weekly IV has increased to 83, DOGE’s weekly IV has surged to 130, and ORDI’s weekly IV is near 124. This week, the top 3 most popular altcoin options traded on Coincall were "Buy BNB-29NOV24-715-C," "Buy DOGE-29NOV24-0.200-C," and "Buy XRP-8NOV24-0.57-C."
4. This Friday, approximately $2.37 billion in crypto options are set to expire. Among them, BTC options have a notional value of $2.01 billion, with a Put/Call Ratio of 0.9 and a max pain price of $69,000; ETH options have a notional value of $353 million, with a Put/Call Ratio of 0.66 and a max pain price of $2,550.
Trade Idea
Trump's recent media appearances and endorsements from figures like Elon Musk have boosted bullish sentiment in BTC and altcoins like DOGE, which rose 18.5% this week. Consider buying call options on altcoins with low implied volatility and delayed price action to capitalize on this momentum.
Buy 10,000x XRP-8NOV24-0.55-C @ $0.0075
#OptionsTrading #Elections2024
📉 As the Bitcoin spot ETF announcement approaches, Bloomberg reports an increase in hedging strategies, with options traders selling call options and buying put options. Anticipating a "sell on the news" scenario after the ETF approval, traders are adjusting their positions. 📊🛡️ #BitcoinETF #OptionsTrading
💰 #OptionsTrading /USDT
It's time for $OP to switch bullish🐃
We got an accumulation at the bottom of a big ascending channel, now looking for a break through the resistance confluence of Superguppy + Key Zone and rise🚀
RSI is getting BULL as well👀
✔️1Tp: 3$
✔️2Tp: 4.6$
✔️3Tp: 7.25$
It's time for $OP to switch bullish🐃
We got an accumulation at the bottom of a big ascending channel, now looking for a break through the resistance confluence of Superguppy + Key Zone and rise🚀
RSI is getting BULL as well👀
✔️1Tp: 3$
✔️2Tp: 4.6$
✔️3Tp: 7.25$
Official :-
The SEC has approved options trading on BlackRock's Bitcoin ETF, allowing investors to hedge or speculate on Bitcoin's price with greater flexibility. This could lead to increased market activity, higher liquidity, and potential short-term volatility, while also attracting more institutional investors to the crypto space.
#SECApproval #OptionsTrading #BTC☀️ #bitcion #btcupdates2024 $BTC
The SEC has approved options trading on BlackRock's Bitcoin ETF, allowing investors to hedge or speculate on Bitcoin's price with greater flexibility. This could lead to increased market activity, higher liquidity, and potential short-term volatility, while also attracting more institutional investors to the crypto space.
#SECApproval #OptionsTrading #BTC☀️ #bitcion #btcupdates2024 $BTC
$BTC 9.5Billion worth of BTC Options expired a few hours ago. How will these affect the market?
Since BTC is trading at the 70k zone during expiry, most of the calls will expire in the money. 😊
Since the strike price is lower than the actual market value, many will exercise the option and buy BTC at the strike price, generating profit. 😁 This is billions of buy orders in the next few hours or even days brother. 🥳 Cheers.
I will post update on the chart later today. Please follow me for daily honest updates.
DYOR. NFA
#TrendingTopic #BTC #OptionsTrading #HotTrends #Marketupdate
Since BTC is trading at the 70k zone during expiry, most of the calls will expire in the money. 😊
Since the strike price is lower than the actual market value, many will exercise the option and buy BTC at the strike price, generating profit. 😁 This is billions of buy orders in the next few hours or even days brother. 🥳 Cheers.
I will post update on the chart later today. Please follow me for daily honest updates.
DYOR. NFA
#TrendingTopic #BTC #OptionsTrading #HotTrends #Marketupdate
Types of European Options
There are two types of European options, and they are:
The owner of a European call option has the right to buy the underlying security at expiration. To profit on a call option, the stock's price must be trading sufficiently above the strike price at expiration to pay the cost of the option premium.
What is the Difference Between a European Option and an American Option?
Alternatives to European alternatives are primarily available in the United States. When the option holder can execute the contract is the key difference between the two.
Benefits of European Style Options
While European options are less dangerous than American ones, they are not without risk. They could be exposed to various potential dangers. In order to avoid such dangers - it is necessary to take a cautious approach.
The danger of a trading lapse is one such risk. Trading in European options closes at the end of the business day on a Thursday preceding the expiration month's third Friday. This can result in an unanticipated shift in the underlying price.
Due to the danger of trade lapses, determining the settlement price may be difficult.
Investors are unable to exercise their options in order to profit from a favourable price movement.
Since the majority of these options are traded over the counter, there isn't much regulation, which adds to the danger.
Click to earn free FDUSD LINK
Click to earn free USDT LINK
#OptionsTrading ##HotTrends
There are two types of European options, and they are:
The owner of a European call option has the right to buy the underlying security at expiration. To profit on a call option, the stock's price must be trading sufficiently above the strike price at expiration to pay the cost of the option premium.
What is the Difference Between a European Option and an American Option?
Alternatives to European alternatives are primarily available in the United States. When the option holder can execute the contract is the key difference between the two.
Benefits of European Style Options
While European options are less dangerous than American ones, they are not without risk. They could be exposed to various potential dangers. In order to avoid such dangers - it is necessary to take a cautious approach.
The danger of a trading lapse is one such risk. Trading in European options closes at the end of the business day on a Thursday preceding the expiration month's third Friday. This can result in an unanticipated shift in the underlying price.
Due to the danger of trade lapses, determining the settlement price may be difficult.
Investors are unable to exercise their options in order to profit from a favourable price movement.
Since the majority of these options are traded over the counter, there isn't much regulation, which adds to the danger.
Click to earn free FDUSD LINK
Click to earn free USDT LINK
#OptionsTrading ##HotTrends
From College to Trading Success: My Key Takeaways_
Started trading in 2012 as a young mom in college. I was hungry to learn the markets while balancing school and motherhood. 📈
Over a decade later, with a Finance degree and years of real-world trading experience, I’ve learned the hard truths about options trading.
Here are some key lessons I’ve picked up along the way…
Weekly Options Risk: Weekly options can go to 0 fast if the trade doesn’t go your way. Only risk what you’re willing to lose with these, as they’re extremely volatile and short-lived. Trust me, I’ve learned the hard way!
Risk Management: It’s not about how much you make, but how much you protect. Sometimes it helps to withdraw profits and reset your mindset, especially after a winning streak. You don’t want to get overconfident and risk too much.
Experience Matters: Anyone can trade, but true success comes from years of studying the market and learning from mistakes. I’ve got a finance degree, but trial and error (emphasis on error) is what really made me improve.
Can You Handle It?: Day trading isn’t just technical analysis, it’s a mental game. Stick to your plan, journal your ideas, and write down what went wrong so you can learn from it.
No Easy Money: Some people might hit it big, but sustainable success takes patience and practice. If you have a get rich quick mindset, you will fail.
Master a Few Setups: I stick to simple strategies and use fewer indicators. Simplicity is often more effective.
Don’t Blindly Follow: Do your own research! Don’t let FOMO or social media hype push you into trades. There’s always the next opportunity, the market isn’t going anywhere.
#TradingLessons #OptionsTrading #tradingjourney #Write2Earn!
Over a decade later, with a Finance degree and years of real-world trading experience, I’ve learned the hard truths about options trading.
Here are some key lessons I’ve picked up along the way…
Weekly Options Risk: Weekly options can go to 0 fast if the trade doesn’t go your way. Only risk what you’re willing to lose with these, as they’re extremely volatile and short-lived. Trust me, I’ve learned the hard way!
Risk Management: It’s not about how much you make, but how much you protect. Sometimes it helps to withdraw profits and reset your mindset, especially after a winning streak. You don’t want to get overconfident and risk too much.
Experience Matters: Anyone can trade, but true success comes from years of studying the market and learning from mistakes. I’ve got a finance degree, but trial and error (emphasis on error) is what really made me improve.
Can You Handle It?: Day trading isn’t just technical analysis, it’s a mental game. Stick to your plan, journal your ideas, and write down what went wrong so you can learn from it.
No Easy Money: Some people might hit it big, but sustainable success takes patience and practice. If you have a get rich quick mindset, you will fail.
Master a Few Setups: I stick to simple strategies and use fewer indicators. Simplicity is often more effective.
Don’t Blindly Follow: Do your own research! Don’t let FOMO or social media hype push you into trades. There’s always the next opportunity, the market isn’t going anywhere.
#TradingLessons #OptionsTrading #tradingjourney #Write2Earn!
Todays Market Overall Prediction
A Put/Call Ratio (PCR) of 0.78 indicates a weak bearish sentiment. The high ratio shows that there are significantly more put options than call options being traded. This suggests that traders are expecting the market to fall.
Make sure to like the post if PCR helped you. Follow for regular updates related to crypto market
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Make sure to like the post if PCR helped you. Follow for regular updates related to crypto market
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Understanding Put Call Ratio PCR in Trading
PCR or Put-CallRatio is a financial indicator that measures the ratio of put options traded to call options traded on specific asset or index within a given timeframe
What PCR Indicates
Below 10 Low PCR Indicates a bullish sentiment suggesting more call options are being traded relative to put options This may imply optimism about rising prices
Above 10 High PCR Indicates a bearish sentiment suggesting more put options are being traded relative to call options This may imply caution or pessimism about falling prices
PCR is used by traders to gauge market sentiment and potential future price movements based on options trading activity
#PutCallRatio #BullishSentiment #OptionsTrading #MarketSentiments #FinancialIndicators
What PCR Indicates
Below 10 Low PCR Indicates a bullish sentiment suggesting more call options are being traded relative to put options This may imply optimism about rising prices
Above 10 High PCR Indicates a bearish sentiment suggesting more put options are being traded relative to call options This may imply caution or pessimism about falling prices
PCR is used by traders to gauge market sentiment and potential future price movements based on options trading activity
#PutCallRatio #BullishSentiment #OptionsTrading #MarketSentiments #FinancialIndicators
Todays Over All Market Trend Prediction
A Put/Call Ratio (PCR) of 0.38 indicates a strong bullish sentiment. The low ratio shows that there are significantly more call options than put options being traded. This suggests that traders are expecting the market to rise.
Make sure to like the post if PCR helped you. Follow for regular updates related to crypto market
#MarketSentimentToday #BullishIndicators #TradingAnalysis #OptionsTrading #BinanceSquareFamily
Make sure to like the post if PCR helped you. Follow for regular updates related to crypto market
#MarketSentimentToday #BullishIndicators #TradingAnalysis #OptionsTrading #BinanceSquareFamily
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