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Surprised no one has made the cryptocurrency equivalent of VIX that moves in the opposite direction of a basket of cryptocurrencies.
by dawhizkid 9y ago
Surprised no one has made the cryptocurrency equivalent of VIX that moves in the opposite direction of a basket of cryptocurrencies.
- dereg 9y agoVIX is based off of the S&P 500 options premiums. There’s not an options market on crypto baskets that I know of (yet).
- AznHisoka 9y agoShort Overstock. It moves very closely in align with crypto.
- dlb_ 9y agoWhy is that? Do they have exposure to crypto?
- zitterbewegung 9y agoYes, they have been accepting crypto in payments for awhile and famously held a bunch. CEO is invested into it.
- wrigby 9y agoYeah, they've made it a point to emphasize that they're working on crypto / bitcoin related things[1]. 1: https://www.investopedia.com/news/overstock-goes-all-bitcoin-stock-climbs-300-2017/ https://www.investopedia.com/news/overstock-goes-all-bitcoin...
- peter303 9y agoBitcoin down almost 70% since high
- nobbis 9y agoVIX is a variance swap, so a "CryptoVIX" would move in line with the expected short-term realized volatility of a basket of cryptocurrencies, not their price. It'd certainly be possible to price such an index (replicating strategy of portfolio of strips of calls/puts of various cryptocurrencies) but it'd be impossible to hedge because transactions costs are too high. You could hedge with crypto-options, but AFAIK they don't exist yet.