Bitcoin Forum

Hey guys, I would like to know what strategies/ techniques you are using for trading options. Especially in the Crypto market. I'm looking to experiment with trading options but Im just a vanilla trader. Would like to learn more from our fellow traders on what their practices is, when it comes to trading Options. TIA.

trade has now developed many ways of trading which are very varied, there are binary options there are also vanilla options, but it looks like the vanilla option doesn't exist in crypto trading, in crypto trading I prefer to rely on support and resistance

Trading Options are very profitable in Binance JEX.

::) Vanilla options is just the name of basic options, so fortunately they are available on the crypto market. You can even found options on Bitmex.

Yeah, but I use Sparrow Exchange. Better UI experience for someone who's just getting started into trading options. Still only stuck at the basics though.

In my own experienced in trading business I am always ask and have some research to learn some and more strategies to earn more. In this industry we need to work hard and don't rush your decision, you need to think well before doing anything. Avoid to much greed because it will drives you going to loss. If you will earn 15%~20% mark up then sell your coin.

I would really love to share every details to you.
But this thread lacks the opportunity to tell it all.
What I mean is, we lack the time and also it will be better to be told in person.

I do it manually, that means I am monitoring the crypto trade industry from time to time, which not all do. Some have their bots which will just automatically do things for them.

I don't know this exchange, do you have a link? How is the volume there? The options are real options like on Deribit, or they are like on Bitmex, ie pseudo-options?

It is offering real options, but very low volume, I guess this exchange is pretty new and has low visibility at the moment.

https://sparrowexchange.com/

But as soon as you register you are hit with ID verification, not the best way to start your brand new crypto exchange business...

Real Options mate kinda like deribit but better?. Good UI, simple to use. Easy for someone to try it out and you can make it more complex to your liking if you are an advanced trader. Volume is decent. They reached 25 million trading volume in just 3 months. Its been over 4 months now.


Yes, it is required by law to only have verified users to be entertained, they cant do much about it. If you'd like a sneak Peak, you could look into their medium page or other social media. Should be able to get a good look in.

Where are they from exactly? I don't know this exchange "sparrowexchange". It's a good platform? How is the interface? It's for beginners or advanced users?

I just got curious when I read the title because of the term Trading Options.
I googled it right away the meaning of Trading Options.
As I understand it is a contract, like trading some contract but you really don't own them. Just like what done in some ETF.
And some leverage trading just like Bitmex since they have perpetual contracts on Bitcoin.

My advice to you is much better to take trading options seriously because for sure the risk is higher there since for me, if you do that kind of trading you will end up using some leveraged exchange which you can leverage your position and prone to liquidations of contracts you bought/sold bases on your position.

Binance and Bitmex are a good trading options. But also you need to learn the simple techniques in trading like discipline, good decision making, and patience. The trading options are really helpful and risky, think critically on "what will you do/what is your next step" to avoid lowering of your state/position. Doing some research can also help a lot.

Crypto trading doesn't suit me, I used to trade crypto in a simple way, I just hold more than three coins at a different price tagged and number, usually I compare overall my profit by selling off these three coins, on an average, I could manage a little bit profit from trading, But I feel comfortable to hold Bitcoin for a long time, it makes me safe because have always believed that Bitcoin doesn't kill me, so this brings me a lot of profit usually, In trading, you need to take a lot of risks but in holding Bitcoin you may not like this, That's why Bitcoin holding is far better than trading, but trading is much profitable if you can manage it properly, if you want then you follow my technique to buying more than three coins at a time which will share loss and profit on an average.

In my own strategy i trade short term or daily trading because everyday i earn not so big amount but its okay for everyday living.
For that strategy i can earn everyday for my family.

I haven't tried that strategy before since I'm only using the basic and simplest strategy of trading. I only buy when the price is low, set my target goal and sell it when the price strikes better. I'm not following any signals and technical analysis and I just deal with every price changes and I have been earning well so far.

Trading BTC is easy.
Trading BTC in a profitable manner is very difficult.
Trading options is difficult.
Trading options in a profitable manner is extremely difficult.
Trading BTC options in a profitable manner requires black belt in trading.

Good luck with that.

I can see a few uses where options could be very handy. (shorting out of the money calls when you are a big whale, for example).
Otherwise it's something out of the realm of possible trades I would ever  recommend for basically anyone.

In my to do list there's a deep review of options, what they are, how to price them, how to trade them.
I need only a little bit of time, the only resource scarcer than bitcoin.

My trading techniques in option trading is based on candlesticks patterns formed at the support and resistance zones, and you must be knowledgeable in drawing those zones perfectly else you will lose many trades I am always mindful if any of these two patterns are formed at those zones Bullish or bearish engulfing bar or pin bars these are price action candles that are very profitable when used with higher time frame although with fewer trading set-up unlike the lower time frame that is very volatile and very difficult to trade.

many techniques that I use for trading and various methods I do to be able to get a profit, usually I use the technique of viewing charts that occur at the exchange and after that I make a line stroke that serves to determine the direction where the coin price will move and can help provide a little position information for buying and selling coins.

Which is exactly the reason why Im looking for strategies to make trading options much more profitable. Trading Options isnt hard but trading options for maximizing profitability can be hard. You could use options trading as an insurance to make sure your BTC price is safeguarded when shorted. I was looking for more than that.

Singapore.

I don't tried and trade options but for techniqyes it is the same as normal trading, you have to rely on fundamentals and technical analysis more often. Always do check the charts and learn to have some skills in TA for you to analyze and have an idea what position you may be able to open that will help you earn.

I wouldn't say trading options is more difficult than trading BTC with futures or margin trading. It's just a little bit more complicated. The big advantage of options is you don't need to borrow funds to get a leverage, so you don't spend expensive fees for that. The other advantage is you know the exact day you'll be liquidated.  

So I don't think it's required by law overthere. COSS exchange is also based in Singapore and KYC is not mandatory on this platform.

Well I think leverage is something very easy to understand and manage, while exposure to time to maturity, exposure to volatility in the underlying and non linearity in the payout (options characteristics not present in futures) are fare more challenging from a trading point of view.

I only use technical analysis, but I don't fully understand it. only taking part of the core. look at chart patterns, make lines, RSI, look for the highest and lowest points. Bolinger, before buying I always draw first, to determine the purchase price, and the selling price. besides trading does not use emotions, because it can make me lose.

People are also exposed to volatility when they trade with leverage. Everyday people are liquidated because of volatility.

Besides technical analysis we have to up to date with the news because in cryptocurrency news can really affected the price and also controlling emotions is hard due to many whales are playing with the market price that can make us panic with the market price

What I meant option prices are dependent on volatility, while futures prices are not.
If Bitcoin is trading at 10,000 a future price is the same when volatility is at 20% or when it is at 80%.
The same is not true for options.
If Bitcoin is trading at 10,000 option prices (all of them) will be lower when volatility is at 20% compared to prices if volatility were at 80%.
Volatility is adding another risk factor to options trading.

Same for all the others factors I mentioned (time etc...)

I personally only use techniques with take profit 2-3% target for each transaction, Of course it can only be done by daily traders because you have to really focus on market price movements. Besides that you also need to learn 2 other techniques, technical and fundamental analysis.

I never follow your technique because we never expect 2 to 3 percentage of daily target. Normally market will move forward or backward at anytime so really traders are change it will start backward. Because they know how we maintain the each transaction so secret techniques are never explain anyone.

You're free to take into account the IV and Theta, or not. It's only the extrinsic value, but at the end of the day your option will only worth its intrinsic price. So if you think an option is overvalued compared to its final value, you're free to not buy it and if you think it's undervalued you're free to buy a good opportunity. Trading options can be as simple as that.

It was hard to tell that in person need more time for that, If we tell it in person maybe we should pay us for our time to teach them.
And Must better to read and search in here if we want more to learn about in trading, Actually there are lots of information in here that we want know about trading.

That's normal for us if we do trading doing it manually and monitor if our coins we want to trade are in a high price or not.

I think no one will have a techniques that produced 2-3% each trade. It's not impossible to do but it's very rare maybe you will lose more than 2-3% each trade also, but you have to be great to maintain your losses and make sure your profits is more than your loss. Even if you focused on the market movement it's impossible for you to make sure profits 2-3% from you trades because you could not predict the price movement will go where.

There are lots of strategies but what most see as best is HODLing for this is the most famous startegy, this is an abbreviation that means 'holding on for dear life' initially started during 2013. This strategy is about holding on to your coins for a long period of time hoping that in the long run the price would kick-off up to the price it reached during 2018. Every strategies has a downside, so as HODLing, so the success of you trade still relies on you. It still essential if you understand bitcoin market, choose wisely how you would trade, make a trading plan and manage your risks.

Trading options as expiry trades, neglecting Time Value and considering only Intrinsic Value I would say it's a suboptimal strategy.
You are completely neglecting part of the value (Time value) you paid for in the option.

The fundamental and technical analysis will help but it will not give accurate results. So, never rely on this technique because it might lead you from losing your fund. How did you know to gain profit between 2-3% a day which is you don't know the movement in crypto of the market. The fact that no one technique gives a long term profit in trading, that is still predicting the market. My technique is using trading bot and tools for my technical analysis.

When there is the investment at the same time you need to plan where you need to invest and which coins will be the best investment for you.
Then you may for long term trading and day trading based on the amount have plan on them.
Please look the other trading how they doing with using the telegram community.

Technical analysis is based on probabilities, so even if you have all the luck in the world to score a sick winning streak, that luck will run out at some point and you'll be starting to lose again.

I some times see people consider themselves to be a pro trader because they have had so much luck that their first 10 or so trades were profitable, but then ended up losing their initial trading balance because their luck ran out.

If you don't know why you are losing trades, you will try out some other strategy without knowing if it is any good because you're super desperate for a win, so you're essentially gambling again.... you know what happens next.