Blog
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Navigating Deep ITM Options in Shallow Markets
Deep in-the-money options can pose challenges, especially in shallow markets where liquidity is scarce. This blog explores a practical strategy to lock in profits and mitigate risks, using Bitcoin options as a real-world example.
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OUTLOOK 10JAN25: From January 10 Expiry to Political Uncertainty
Explore the latest Bitcoin options market trends following the January 10 expiration. Dive into traders' strategies, from long straddles to bearish put spreads, as they prepare for heightened market activity tied to President Trump’s inauguration. Discover insights into volatility expectations and sentiment shifts in this comprehensive outlook.
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Gamma Hedge: How Market-Makers Hedge their positions?
Discover how market-makers expertly hedge their risks using advanced Delta and Gamma hedging techniques. This blog takes you step-by-step through real-world simulations, showcasing how to stabilize positions and manage volatility like a pro.
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Marke Outlook 30DEC24: After the Storm
The 27 December Bitcoin options expiry marked a historic moment, leaving behind a calmer market as traders shift their focus to the key expiries of 31 January and 28 March 2025. This blog explores the aftermath, market sentiment, and what lies ahead as a new U.S. president prepares to take office.
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What is Delta Hedging: A Comprehensive Visual Guide
Explore the intricacies of delta hedging in options trading with our visual guide. Learn how it works, its limitations, and why it's crucial for managing risk in volatile markets.
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Navigating the Currents of Debit and Credit Spreads in Options Trading
Explore the strategic nuances of debit and credit spreads in options trading, mastering their applications in varying market conditions to optimize your trading decisions.
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Market Outlook 20DEC24: 20 Dec Expiry; Reflection of Market Concerns for Price Correction
The Bitcoin options market offers a treasure trove of insights for traders who know where to look. Over the past three weeks, patterns in options activity have revealed subtle yet critical clues about potential price movements. From high Open Interest in key expiries to dynamic shifts in put and call activity, this blog deciphers the signals left by savvy traders—shedding light on how they navigated Bitcoin’s volatility with precision and foresight.
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ATM or OTM options; That's the Question
Why do some traders prefer out-of-the-money (OTM) options despite their lack of intrinsic value? In this blog, we explore the trade-offs between OTM and at-the-money (ATM) options by analyzing their performance under various conditions such as price movement, volatility changes, and time decay. Discover how each factor influences the potential risks and rewards, helping traders make more informed decisions.
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Market Outlook 30NOV24: Short Risk Reversal for Dec 6th
Explore the emerging dynamics of Bitcoin's December 6th options expiry, where market participants lean on Short Risk Reversal strategies to navigate potential price corrections and volatility.
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Option as Profit Locker
Discover how traders can navigate a volatile bullish rally, leveraging options strategies to balance profit opportunities and risk management effectively.
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Market Outlook 24NOV24: Options Activity After Bitcoin's ATH
Explore the latest trends in Bitcoin options trading following its all-time high. This report delves into key expiries, strike dynamics, and market positioning, offering insights into trader sentiment and strategies.
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Volatility Smirk: How It Can Deceive and Drain Your Profits
The volatility smirk in Bitcoin options is more than just a quirky curve—it’s a critical factor that can quietly erode your profits. In this blog, we explore how elevated implied volatility impacts out-of-the-money options and demonstrate, through real-world simulations, why understanding the smirk is essential for smarter strategies.
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Market Outlook 14NOV24: Options Market One Step Ahead
Following the U.S. election, Bitcoin options markets have shown intriguing shifts. Implied volatility saw a significant drop, yet traders flocked to $80K and $90K strike levels, reflecting bullish sentiment as Bitcoin hit all-time highs. This Market Outlook explores these dynamics, highlighting key strike levels and the market’s anticipation for further price movements.
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Market Outlook 2NOV24: An Opportunity for Speculators and Premium Accumulators
As Bitcoin’s November 8 options expiry approaches, the market is buzzing with anticipation. With a notable spike in implied volatility and traders divided between speculative bets and income-focused hedging, all eyes are on the US election’s potential impact. Will Bitcoin break resistance, or will profit-taking spark a correction? Dive into our analysis to uncover the key insights and strategies shaping this high-stakes moment in the Bitcoin options market.
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Diagonal Spreads: Be Careful Not to Lock in Loss!
Unlock the potential of the Bullish Diagonal Call Spread—a strategy that combines directional gains with flexibility. Discover how this hybrid approach can enhance your trading edge, leveraging time decay and market movements to optimize returns without the full cost of owning the underlying asset.
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Market Outlook 22OCT24: Bitcoin Traders Bet on $75K as Election Nears
This research analyzes the Bitcoin options market ahead of the November 8th expiration, focusing on the $75,000 strike. While short positions suggest caution, overall market sentiment appears optimistic, with activity at higher strikes and on-chain data pointing to potential for upward movement.
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Exploring the Long Straddle in Options Trading
The Long Straddle is a versatile options strategy that profits from significant price swings in either direction. Learn how to set it up and leverage low implied volatility for optimal results.
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synthetic call: A Solution to Shallow Options Markets
Discover how the synthetic call strategy can solve liquidity challenges in shallow Options markets, offering traders flexibility and control while maximizing profit potential and managing risk.
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Market Outlook 10OCT24: IV Moves Ahead of the U.S. Election
With the U.S. elections approaching, Bitcoin options traders are positioning for heightened volatility. Our analysis dives into the shifts in implied volatility, market sentiment, and how macro events could drive significant market moves.
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Short Strangle
In this blog, we explore the Short Strangle strategy and compare its performance to the Short Iron Condor, focusing on gamma risk, volatility, and time decay. Using simulations, we show how both strategies react as they approach expiration and highlight the importance of managing gamma risk.