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One can make money predicting volatility.
by ilija139 2y ago
One can make money predicting volatility.
- Wingy 2y agoWhat do you mean by that?
- ilija139 2y agoLike FooBarBizBazz says below. One can buy and sell multiple options at the same time such that the trade overall makes money if the price stays within a range or (with a different set of option trades) makes money if the price goes outside a range, regardless if it is up or down. Search for straddle and strangle options. Option trading for Bitcoin and all major crypto currencies is possible and it is where the majority of trading happens.
- FooBarBizBazz 2y ago"Reverse collar" (aka "long (iron) condor") options strategies would be one possibility, depending on the premiums people are charging. This is assuming that options trading for Bitcoin is possible and works the same as options trading on the ordinary stock market. Also, I am not an options trader.