Shorting Got You REKT? Try Crypto Put Options.

[vennali]

Flash spikes and crashes are very common in this volatile crypto market. Overly leveraged traders and investors constantly face the threat of margin calls, premature liquidations, and large uncontrolled losses.

Better risk/reward with Put options

With Put options, you do not have to worry about being forced out of position prematurely. Risk is limited to just the Premium Payable while you still enjoy leveraged returns on your position. Sparrow options, being covered, helps to further protect your positions.

Examples given on Seeking alpha.

Happy Trading.

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[teddybear]

Do you have more info about Options?

[amacar2]

Do you have more info about Options?

Options are like head and tail game, where you put money on market movement to one way and if it go opposite you will loss what you paid.

In margin trading you own what you put money on until your position get liquidated or preset stop limit is reached. You can recover from your losing position if market recover in margin trading but in option your position expire with time and return is also not as high as margin because of different payout structure depending on market in option trading.

[Wind_FURY]

OP, I believe in this time of the market cycle, it might be more profitable for everyone to buy actual Bitcoins, and HODL them. It's on it's way to 5 digits again. This time, it might not go back to 4 digits anymore.

BUT, give us your call options.

[1Referee]

Do you have more info about Options?

User fillippone recently did a full breakdown of what options are; https://bitcointalk.org/index.php?topic=5214418.0

Anyone here considering getting into options should read that thread first. It's a long but extremely informative read.

I have been into trading for a while now and I'm still avoiding options. Not my cup of tea. Don't let "experts" on social media convince you that options are low risk and easy to trade instruments. They're not. Rule of the thumb; if you can't even do simple buy/sell spot trading, then you should definitely stay away from options.

[davis196]

Put and call options have been around for decades.
It's not something revolutionary and I wouldn't trust any new crypto exchange platform that implements options trading.I guess some crypto trading platforms want to make some easy money from the premium payable for the options(which is non-refundable,even if the option is "out of the money").This doesn't add any value to the traditional crypto trading.

[TheUltraElite]

I am personally not a fan of options market. It may seem like a good alternative to spot trading where mainly making money is buying low and selling high. The comparison here is that you dont buy them directly but you buy a contract.

As put options might seem good in a bear market you also need to know the risk that rise is also possible and you may get liquidated soon if you are going for a leverage trade.

I always feel safe with buying at deep down moment and then hodling it till a target and selling. Why take the risky way where you lose more money by something that is like a gamble than analysis? Options is a gamble, there is very less logic involved even if you have to keep tabs on charts and Resistance/Support levels.

[dark08]

OP, I believe in this time of the market cycle, it might be more profitable for everyone to buy actual Bitcoins, and HODL them. It's on it's way to 5 digits again. This time, it might not go back to 4 digits anymore.

BUT, give us your call options.

Maybe right but maybe wrong we cannot know when the time bitcoin goes up or down but for a long term run bitcoin have a high chance to break its alltime high.
I'm not using crypto put option when the market is bullish maybe this kind of strategy is more effective when market is besrish just my opinion.

[joniboini]

This is honestly the first time I see someone recommending options to avoid rekt (subtly). If anything, that might increase your case of going downhill within 10 minutes.

IIRC, one of those options providers even said that more than 72% of investors lose their money when they play this game. Is this a better option than your usual buy low sell high trading?

[pajak666]

This is honestly the first time I see someone recommending options to avoid rekt (subtly). If anything, that might increase your case of going downhill within 10 minutes.

IIRC, one of those options providers even said that more than 72% of investors lose their money when they play this game. Is this a better option than your usual buy low sell high trading?

Seems better by quite a high margin considering over 90% of investors lose on trading currencies:D

[panganib999]

Doesn't trading with options bring about more risk than normal trading? or even margin trading at that? Just the fact that whales are the ones often in the past participating in trading with options, it already says a lot about how risky it is and how you can lose money pretty quickly. Sure, Options may have recently become available for the mass public to use, with Bakkt and CME releasing Options trading but it still doesn't mean that they encourage you to use it, I think. Especially if your a beginner in the market, Options is one part you'd want to avoid, even if your quite experienced already tbh.

[ryzaadit]

Options also make you more rekt, their withdrawal process was not really automatically required 2-3 days to process all withdrawal. We are know trading crypto with a short trade sometimes can make you rekt, but an option more rekted than crypto. Why? because every time you make a wrong option all your investment will be gone and the broker got your money it's really different from crypto went you can still get control of all of your assets.

Just some suggestions, for a people who wanna try options trading. You must have a good emotional control, cause it really can be the same as gamble if you don't know how you manage the money, emotion, psychology and technical analysis. 90-95% of people doing an option, always getting an emotional/psychology problem went they doing the wrong option they always doing a martingale system because of that their money "Out of Fund".

[Sadlife]

Looks like Options is a high risk high return kind of trading, seriously how can you trade knowing that you might loss than gaining. Sometimes shorting is not so bad cause you're able to stop a huge loss before it gets worse, but with options trading you're not.
Although option trading might be useful in some scenario's like example when you're sure and comfortable with the position that you've made with the help of TA you can gain alot, the problem is you need a lot of mental toughness.
It's more like a gamble more rather than a trading for me.

[Wexnident]

Rekt? Options amplify that imo. Try? You'd be more rekt than you ever were before if you did so. Sure, it could also amplify gains, but are you sure you have the ability to do so? Options isn't as simple as that after all. Experienced traders avoid Options, what more newbies that don't know anything right? Even if you were experienced, you'd still be walking on a thin line of Loss and Gains, and IMO, your more likely to fall into losses than earn gains in Options. If shorting leads you to a loss of $10, Options would lead you to a loss of $100.

[hugeblack]

It is the worst advice you can give to a beginner, especially for someone who has suffered a price collapse (REKT.) It is much worse than Gambling.
If you do not have a plan, do not know how to evaluate risks, profit limits, define loss, how to decide to buy/sell, do not trade.
Many of those who go bankrupt are people who do not have enough knowledge or have feelings to control them.

Recommendation options as an alternative will makes things worse, whether for this it to be better or leave the market.

I also recommend reading this topic ---> Everything you wanted to know about BTC options but were afraid to ask!

[mersal]

Option trading is more like a gambling so one who wants risk free trading then they should avoid optional trading.

When they know market is highly volatile why they are in need of buying and selling,they can actually wait for their time to get reach their desired margin until keep on holding.Long you HODL then better you have chance to make profits.