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Yes, you could trade options on Bitcoin futures, or options on Bitcoin ETFs. You could buy calls and puts, which would make you "positively exposed" to volatil
by oa335 2y ago
Yes, you could trade options on Bitcoin futures, or options on Bitcoin ETFs. You could buy calls and puts, which would make you "positively exposed" to volatility - i.e. if people's expectation of volatility goes up, the price should go up. By "delta" hedging them every so often you could "realize" some of that volatility - you would be buying when the price goes down, selling when the price goes up.
Of course, this is all baked into the option price itself, so its not "free money" - its a bet.
- skybrian 2y agoI'm certainly not going to do that, but I'm wondering if there are ETF's doing something like that. Aren't there ETF's for everything these days?
- oa335 2y agoMaybe, but I’d stay very far away from bitcoin options or any funds that deal in them. They are likely paying a lot in fees and taking hidden risks that will be passed on to shareholders.