Blog
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Rolling the Straddle
A straddle offers the potential for unlimited gains in either direction, but what happens when the price moves in your favor—only to reverse and erase your profits? In this blog, we explore a dynamic rolling strategy that helps traders lock in gains, reduce risk, and hedge against retracements. By systematically adjusting strike prices, we transform a static straddle into an adaptive strategy, ensuring that price moves work for you, not against you.
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OUTLOOK 11FEB25: Traders Play It Safe—For Now
Bitcoin options traders are playing it safe—cautious in February, optimistic for March. With volatility at a low and funding rates neutral, the market stands at a crossroads. Will the calm hold, or is a storm brewing? Stay ahead with our latest Outlook.
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Bitcoin Options Features for Traditional Option Traders
Bitcoin options are gaining traction, but how do they compare to traditional stock options? While the core mechanics remain similar, key differences—such as trading hours, settlement methods, and volatility—can impact your strategy. In this blog, we break down these distinctions to help stock options traders navigate the Bitcoin options market with confidence.
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OUTLOOK 31JAN25: Short Risk Reversal & Expiry Fallout
In the final week of January, traders employed short risk reversals to hedge their Bitcoin exposure, signaling cautious optimism. The 31 Jan expiry settled near $104,500, disappointing many option buyers while highlighting options' role in risk management. As OI dipped post-expiry, positioning for February expiries is already underway.
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Managing ITM Covered Call
Master the art of managing covered call strategies as we explore how to handle ITM scenarios effectively. From maximizing profits to rolling positions for extended gains, this blog delves into real-world examples using Bitcoin options to illustrate practical decision-making strategies. Whether you're seeking additional income or a hedging tool, discover the nuances of covered calls and their role in risk management.
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MARKET OUTLOOK 21JAN25: When Politics Meets Markets
Explore how Bitcoin options traders navigated the turbulence surrounding President Trump's inauguration. From backwardation and implied volatility spikes to the evolving strategies and market sentiment, this blog delves into the key insights and market dynamics during a pivotal political event. A must-read for those tracking the interplay of crypto and global events!
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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.