Looking for advise on an options play, that will pay out if crypto goes up or down
I am looking for advice on my trade, want to see if anyone can talk me out of it.
I am buying puts and calls on btc and eth, this is becasue I think volatility is not going to stay this low, and the options are the cheapest they've ever been.
Basically I will make money if crypto goes up or down a medium amount, although I am skewed towards up. need 15% down or 10% up. Less the quicker it happens.
Easy right? except for time decay to keep this position open I am losing money each day that nothing happens.
I have put 10% of my trading money into this play. They expiry in December so I have time. and then I may put the trade on again until june next year.
So what do people think of the trade? is 10% too much to invest? and any other thoughts.
And if anyone is interested in trading on deribit here is an affiliate link
https://www.deribit.com/reg-10009.1179
And while I'm at it here are some for other sites
Interesting play, seems similar to an iron condor in Options trading in the stock trading, only I assume you are just purchasing options not a spread. I think the trading strategy is sound, and the amount of time you have given yourself to be right is great, December is much farther out then the usual 35-45 days spread traders use. As the percentage is higher then my personal limit of 5% per trade, but that’s a personal choice.
Happy Trading,
@shortsegments
Thanks, I appreciate the feed back. I don't think I will do 10% next time, it's getting a bit nose bleed-y.
Mind I am a options seller at heart so, I am used to having a lot on the line, but at least that way I get paid to wait
For me it a very good time range for your trading position to come out with a very good results, time is so precious I would have advised if you could have use such capital and earn more money instead of waiting for long and be anticipating the increase in bitcoin or ethereum price which might increase or dump. There are no certainty but if the economy will stabilize before the year runs out there might be great chance of having a great turnout in your trading position.
Good luck!