Re: Trading Bitcoin Options
Posted: Tue Oct 08, 2019 4:00 pm
It is cheaper, but with futures you are on the hook for the entire amount if it heads south (mark to market). If in a long call and the underlying heads south you are only out the premium paid.
One additional recommendation...nothing like real money on the line to help really learn something/focus your attention. I personally would not go near uncovered bit coin options with a 10 foot pole given your level of understanding. However, after learning more you may want to experiment with something that involves not much potential for capital loss. Say for example a low priced stock with good volume that has options. You are most likely going to lose money if you do it for a while, but consider it tuition and not investing or trading.
I do futures, I do leverage, I do not do options as I find them incredibly difficult. There is a lot to learn and remember to do them well on a tactical level. I didn't lack the capacity to understand them, but they are just "hard" in many ways. Of course, someone who wants to sell you an options course will say they are easy and in a fashion they are. I'd say they are the most difficult thing I've ran into except for trying to understand treasury futures and their underlying finance calculations (cost of carry).
One additional recommendation...nothing like real money on the line to help really learn something/focus your attention. I personally would not go near uncovered bit coin options with a 10 foot pole given your level of understanding. However, after learning more you may want to experiment with something that involves not much potential for capital loss. Say for example a low priced stock with good volume that has options. You are most likely going to lose money if you do it for a while, but consider it tuition and not investing or trading.
I do futures, I do leverage, I do not do options as I find them incredibly difficult. There is a lot to learn and remember to do them well on a tactical level. I didn't lack the capacity to understand them, but they are just "hard" in many ways. Of course, someone who wants to sell you an options course will say they are easy and in a fashion they are. I'd say they are the most difficult thing I've ran into except for trying to understand treasury futures and their underlying finance calculations (cost of carry).