#TipsTradingFutures | TRADING FOR LIFE - Options - an easy way to generate consistent profits.
Crypto Option Trading is one of the few trading techniques that is easy for anyone to do.
What is Options Trading?
Option trading in crypto gives traders the right to buy or sell a crypto asset at a certain price before the expiration date. There are two main types of options: call option (right to buy) and put option (right to sell).
Simple Example:
Let's say you buy a call option on Bitcoin with a strike price of $30,000 and a premium of $500. If the price of Bitcoin rises to $35,000 before the option expires, you could buy Bitcoin for $30,000 and sell it for $35,000, making a profit of $4,500 (minus the $500 premium).
How to Do Option Trading:
1. **Select Option Type:** Determine whether you want to buy a call option or put option based on predicted price movements.
2. **Determine the Strike Price and Expiration Date:** Select the strike price and expiration date that suits your trading strategy.
3. **Monitor Price Movement:** Always monitor the price movement of crypto assets to decide when to execute an option or let it expire.
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