Feeling bullish? Buy a Call option.

[vennali]

f you think that prices will move up, and you want to trade 1 BTC worth of value but do not have 1 BTC, you can buy a Call option and profit from Bitcoin’s volatility.

Why buy Call?

Unlike spot trading which requires full collateral, buying a Call option allows you to participate in the movement of an underlying asset for a relatively small price (Premium Payable) while enjoying leveraged returns.

Here’s a scenario

    You are bullish on BTC and expect it to trade above $6,000 on 26 June 2020
    You can buy a Call for 1 BTC with Strike Price at $6,000, Settlement Date on 26 June 2020
    The cost for making this position will be 1,211.07 SP$ (Premium Payable)

How do I profit?

    In order to profit from your buy Call, BTC will have to trade above your Breakeven Price at Settlement Date
    Breakeven Price is calculated as [Strike Price + Premium Payable]
    In this scenario, Breakeven Price will be $7,211.07‬ (6,000 + 1,211.07)
    The higher BTC trades above your Breakeven Price at $7,211.07 at Settlement Date, the greater your profit. Technically, your profit is unlimited
    However, if BTC trades below $7,211.07 , your maximum loss will be limited to your Premium Payable (1,211.07 SP$), even if BTC goes to $0


What are your thoughts on Call Options and Options in general?

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[deisik]

What are your thoughts on Call Options and Options in general?

You run the systemic risk of a trading platform failure

Whether it be accidental or intentional, if the platform (exchange) you trade on folds, you lose money regardless of the current price and the direction it is headed. This risk is negligible in case of regulated exchanges like CME, NYMEX and their likes, the ones that are trading derivatives. However, with cryptocurrencies, it is something that you should always be aware of, actually, be afraid of (apart from outright price manipulation by the platform of your choice). Put differently, your bitcoins are yours only if they are in your personal wallet (read, it is you who holds the keys from it)

[vennali]

What are your thoughts on Call Options and Options in general?

You run the systemic risk of a trading platform failure

Whether it be accidental or intentional, if the platform (exchange) you trade on folds, you lose money regardless of the current price and the direction it is headed. This risk is negligible in case of regulated exchanges like CME, NYMEX and their likes, the ones that are trading derivatives. However, with cryptocurrencies, it is something that you should always be aware of, actually, be afraid of (apart from outright price manipulation by the platform of your choice). Put differently, your bitcoins are yours only if they are in your personal wallet (read, it is you who holds the keys from it)

Well, thats with every platform to be honest. I agree that it is an added risk but, with crypto being legal in a lot of countries now. Its easier to have a fair trail against them in case of gross negligence. Earlier, they could just say "oops, we got hacked and lost all the coins" and dissolve without any course of action taken against them. Now, its not the case. Regulation certainly helps.

[deisik]

What are your thoughts on Call Options and Options in general?

You run the systemic risk of a trading platform failure

Whether it be accidental or intentional, if the platform (exchange) you trade on folds, you lose money regardless of the current price and the direction it is headed. This risk is negligible in case of regulated exchanges like CME, NYMEX and their likes, the ones that are trading derivatives. However, with cryptocurrencies, it is something that you should always be aware of, actually, be afraid of (apart from outright price manipulation by the platform of your choice). Put differently, your bitcoins are yours only if they are in your personal wallet (read, it is you who holds the keys from it)

Well, thats with every platform to be honest. I agree that it is an added risk but, with crypto being legal in a lot of countries now. Its easier to have a fair trail against them in case of gross negligence. Earlier, they could just say "oops, we got hacked and lost all the coins" and dissolve without any course of action taken against them. Now, its not the case. Regulation certainly helps

There's another thing about derivatives (options and futures alike)

Futures contracts as well as options have expiration dates. This is kinda obvious, but when you feel it with your skin in the game and your money on the table, it feels totally different (I've been there). The point is, if the price of the underlying asset doesn't move much, you will still be losing money, i.e. the premium you paid to the seller of a futures or options contract. Simply holding a certain amount of cryptocurrency is a total win in this case -- you don't owe anything to anyone, and don't have to worry about rollovers and similar stuff

[vennali]

Think last week was a great time to buy call option for BTC. I missed it as I was unsure which way BTC was heading. ETH on the other hand!!! Amazing week. 

[sebr1ng]

I really enjoy trading Futures and I've been looking into options, but haven't quite decided to try yet. It seems more risky, eventhough you know what the maximum loss can be...

[vennali]

I really enjoy trading Futures and I've been looking into options, but haven't quite decided to try yet. It seems more risky, eventhough you know what the maximum loss can be...

There are a lot of similarities between futures and options. So, that gives you a head start. Check out Sparrow Exchange. They have a much simpler UI to accommodate new traders to get into Options. Also have a blog to help you get started as well. Good luck. 

[slaman29]

Confusing for me to be honest, I know it makes sense and I understand why people prefer to do this because it ensures nothing is stuck at the settlement date, you win or lose, but I'd rather just make bets on Bitcoin price if I want to bet (which I don't).

Freebitcoin actually has great options, you put yr money in there for a settlement date on price, and you win other people's money who bet on losing price.

Think last week was a great time to buy call option for BTC. I missed it as I was unsure which way BTC was heading. ETH on the other hand!!! Amazing week. 

Hope it lasts!

[ashmodeus]

yes, that right, this week crypto is on fire,and the most interesting here it seems BTC have decoupled from stocks,with ETH leading the crypto movement,It seems that the BTC dominance has diminished again.However about data i've read,volume is still not convincing,but the fact,its not too bad because we are still in the big consolidation range.

[vennali]

yes, that right, this week crypto is on fire,and the most interesting here it seems BTC have decoupled from stocks,with ETH leading the crypto movement,It seems that the BTC dominance has diminished again.However about data i've read,volume is still not convincing,but the fact,its not too bad because we are still in the big consolidation range.

Ethereum has 10x the volume of BTC in the ast 24hrs but both doing good respectively. Another week where buying calls would have been amazing. Lets hope the trend continues.

[whyrqa]

Perhaps my hopes are too optimistic, but somehow Bitcoin is a deflationary currency that is limited in its quantity. In addition, after the halving, Bitcoin mining decreased and this in a certain way creates a shortage of coins in the cryptocurrency market. I believe that in the near future this will start to show up very strongly on the market. In addition, I had very positive expectations regarding Ethereum, especially on the eve of July 30, because Ethereum 2.0 is scheduled for that time. today we have $ 326 for ethereum and this is only the beginning of a long-term rally.

[vennali]

Perhaps my hopes are too optimistic, but somehow Bitcoin is a deflationary currency that is limited in its quantity. In addition, after the halving, Bitcoin mining decreased and this in a certain way creates a shortage of coins in the cryptocurrency market. I believe that in the near future this will start to show up very strongly on the market. In addition, I had very positive expectations regarding Ethereum, especially on the eve of July 30, because Ethereum 2.0 is scheduled for that time. today we have $ 326 for ethereum and this is only the beginning of a long-term rally.

Great time to buy some long dated calls then. For Both ETH and BTC. Sparrow Exchange has what you need in this case and just today, they announced secondary market for Options.



With the Secondary Market, you can buy or sell Sparrow Options before the Settlement Date, giving you more ways to control risk and take advantage of opportunities.

[ashmodeus]

yes, that right, this week crypto is on fire,and the most interesting here it seems BTC have decoupled from stocks,with ETH leading the crypto movement,It seems that the BTC dominance has diminished again.However about data i've read,volume is still not convincing,but the fact,its not too bad because we are still in the big consolidation range.

Ethereum has 10x the volume of BTC in the ast 24hrs but both doing good respectively. Another week where buying calls would have been amazing. Lets hope the trend continues.

well,probably because Ethereum 2.0 Developers Announce ‘Final’ Testnet Before Network Launch , we can see how much people are enthusiastic about this, and it can be seen from eth that tends to be overbought in my opinion,and from my perpective,there just a small chance to see eth below 300 again,its just reminding me about ADA rally on earlier this month,its really overbought, on that time i just wonder when the retrace coming,but its nothing,just a small retrace,and continue rising,and that maybe happened to ETH.

[Gozie51]

Perhaps my hopes are too optimistic, but somehow Bitcoin is a deflationary currency that is limited in its quantity. In addition, after the halving, Bitcoin mining decreased and this in a certain way creates a shortage of coins in the cryptocurrency market. I believe that in the near future this will start to show up very strongly on the market. In addition, I had very positive expectations regarding Ethereum, especially on the eve of July 30, because Ethereum 2.0 is scheduled for that time. today we have $ 326 for ethereum and this is only the beginning of a long-term rally.

Bitcoin call has been bullish for close to week which is reflecting on etheruem too. By the month end, we are surely going to see more bull run from etheruem likewise as bitcoin is growing.

[sebr1ng]

I really enjoy trading Futures and I've been looking into options, but haven't quite decided to try yet. It seems more risky, eventhough you know what the maximum loss can be...

There are a lot of similarities between futures and options. So, that gives you a head start. Check out Sparrow Exchange. They have a much simpler UI to accommodate new traders to get into Options. Also have a blog to help you get started as well. Good luck. 

Thanks, will check it out, although I'm currently using Binance for Futures.

[Dilerium90]

If you want to trade options on cryptocurency exchange, i would advise Deribit. I have been studying this exchange for half a year and have been successfully trading on it. In my opinion, this is the best cryptocurrency exchange for options at the moment. You can trade ETH and BTC options and futures also (x100 and x50).

[vennali]

If you want to trade options on cryptocurency exchange, i would advise Deribit. I have been studying this exchange for half a year and have been successfully trading on it. In my opinion, this is the best cryptocurrency exchange for options at the moment. You can trade ETH and BTC options and futures also (x100 and x50).

Well, I wouldn't discourage users to use other platforms but I personally think it best to try different(genuine) exchanges and try to get the best value out of your trades. That's what I do. I just go through the exchanges and see which platform gives the best value for my trade. If you just stick to one. You might be losing a lot of value on your trades if you stick to just 1 platform. My main platform is Sparrow Exchange since it offers 50% off on trading fees while I use SPO. So, it automatically brings be generally good value trades.

[bearexin]

yes, that right, this week crypto is on fire,and the most interesting here it seems BTC have decoupled from stocks,with ETH leading the crypto movement,It seems that the BTC dominance has diminished again.However about data i've read,volume is still not convincing,but the fact,its not too bad because we are still in the big consolidation range.

Have you seen how the price went up, and you still say that the dominance is falling? Lol. In case you don’t know, Ethereum makes major moves when Bitcoin is moving, it follows Bitcoin and that’s how it moves. Ethereum has increased in price, and so did Bitcoin, the price managed to stay above $10,500 and as I checked now it’s at $10,900 after it reached over $11.300 and dropped back. All it takes is just time and the price will go back.

I have been studying this exchange for half a year and have been successfully trading on it. In my opinion, this is the best cryptocurrency exchange for options at the moment. You can trade ETH and BTC options and futures also (x100 and x50).

But I do hate derivative exchanges for its obvious dangerous nature. When you opt for availing high leverage like 100x or 50x then you will get liquidated even for small correction. In this crypto space volatility is most common and you cannot be expect about strong one direction market all the times. So even the curent situation seems too bullish, it would be too good if we trade only on spot exchange or in derivative exchanges but with very small leverage like 2x or 5x or maximum 10x.

[ashmodeus]

yes, that right, this week crypto is on fire,and the most interesting here it seems BTC have decoupled from stocks,with ETH leading the crypto movement,It seems that the BTC dominance has diminished again.However about data i've read,volume is still not convincing,but the fact,its not too bad because we are still in the big consolidation range.

Have you seen how the price went up, and you still say that the dominance is falling? Lol. In case you don’t know, Ethereum makes major moves when Bitcoin is moving, it follows Bitcoin and that’s how it moves. Ethereum has increased in price, and so did Bitcoin, the price managed to stay above $10,500 and as I checked now it’s at $10,900 after it reached over $11.300 and dropped back. All it takes is just time and the price will go back.

well,i post it on july 24 and if u read carefully every chart,data of btc before 25 july and comparing with ETH,u will know who take the lead, ETH has make the own major move,even when BTC is still following the stock market movements ,correlation with the stock market since March 2020 it is something that many traders will already know,and BTC has found the own way a few day before you criticize me.

[vennali]

yes, that right, this week crypto is on fire,and the most interesting here it seems BTC have decoupled from stocks,with ETH leading the crypto movement,It seems that the BTC dominance has diminished again.However about data i've read,volume is still not convincing,but the fact,its not too bad because we are still in the big consolidation range.

Have you seen how the price went up, and you still say that the dominance is falling? Lol. In case you don’t know, Ethereum makes major moves when Bitcoin is moving, it follows Bitcoin and that’s how it moves. Ethereum has increased in price, and so did Bitcoin, the price managed to stay above $10,500 and as I checked now it’s at $10,900 after it reached over $11.300 and dropped back. All it takes is just time and the price will go back.

I have been studying this exchange for half a year and have been successfully trading on it. In my opinion, this is the best cryptocurrency exchange for options at the moment. You can trade ETH and BTC options and futures also (x100 and x50).

But I do hate derivative exchanges for its obvious dangerous nature. When you opt for availing high leverage like 100x or 50x then you will get liquidated even for small correction. In this crypto space volatility is most common and you cannot be expect about strong one direction market all the times. So even the curent situation seems too bullish, it would be too good if we trade only on spot exchange or in derivative exchanges but with very small leverage like 2x or 5x or maximum 10x.

I mean, it was great one direction run for almost a week for BTC. The good thing about Sparrow Exchange is that they have launched a secondary market as well for options, so you can buy or sell Sparrow Options before the Settlement Date, giving you more ways to control risk and take advantage of opportunities.