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/biz/ - Business & Finance

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4841750 No.4841750 [Reply] [Original]

With the official futures becoming a thing, many expect Bitcoin to drop.

I was thinking of buying a call and a put to make a long stradde/strangle. What do you think /biz/? With this strategy one would be profitable if there is a big move, either up or down.

The only exchange offering options is Deribit, and I have yet to check the prices.

>> No.4841853

I am thinking about moving all my BTC to ETH on the 9th but not so sure yet

>> No.4841869

>>4841750
When does it start? On the 10th?

>> No.4841988

>>4841869
10th and 18th, there are two exchanges offering futures:
https://cointelegraph.com/news/big-fish-entering-bitcoin-waters-all-eyes-on-december-10-and-18

>> No.4842903

Nobody got an options strategy?

>> No.4843214

>>4842903
Tough to say, it can go either way honestly, but with so many people already thinking there will be a short there will be some betting against that happening. Also it's interesting, I know with futures you don't need a single bitcoin, it's all cash settled. But the players that DO have a sizeable bitcoin stack will be better able to actually manipulate the price.
No strategy for me but I am nervous holding bitcoin. As much as i'd like to cash out, I didnt want to til 2018 because I don't want to be messing with taxes on that.

>> No.4843305

>>4841750
It really depends on how you interpret the role of futures in this market place. They are being implemented in some people view to tame this market. If they succeed in that then opening up a straddle position will almost certainly cost you all of your money. If they fail to do that and volatility breaks out then you have a good chance of making money, so long as you have enough money to meet margin calls and avoid liquidation. Personally I am in the process of incorporating to try and create a perfect arbitrage, leverage long on cme buy btc on gdax, sell btc on coinone cover losses assuming bear market with arbitrage and repeat. That way if there is ever a bull run or upward spike I cash out leveraged long with 15 futures or so and if a bear market hits beuase of the trade freezing at 7/13/20 percent and korea always trades that or more higher than us I never lose. We'll see if chase cooperates.

>> No.4843662

>>4841853
ETH is a lot more stable crypto, it's just not as tapped as BTC yet. This is the time to buy ETH, it's going to be big. The tech is a lot more functional with ETH as well, there is more you can do with it. You buy ETH now, you make big profit in months to come.
buy and hold

>> No.4843677
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4843677

>> No.4843682

You are all retarded

What will happen is this:

CME derivatives will allow Bitcoin exchanges to run fractional reserve and then cover their positions with derivative/future positions.

Coinbase etc will start selling BTC they dont have

>> No.4843698

>>4841750

Do what is obvious. Get Justed.

>> No.4843738

>>4841750
Futures dont trade like typical call/put options. Its more like waging on margin. Should your long position depreciate youll have to deposit money to avoid a house or margin call. Nothing like buying an options contract where it just expires worthless

Get it?

>> No.4843767

>>4841750
Buy if it drops, hodl if it goes up. Keep it simple retard.

>> No.4843772

i bet btc options liquidity on cme is going to fucking suck if there are any at all, which i doubt.

>> No.4843831

>>4841750
Just buy bitcoin you stupid fuck

>> No.4844026

Is it normal for futures becoming available to cause a crash? I know it happened with gold but gold is unwieldy and expensive to buy hold or sell. Bitcoin not so much.

>> No.4844054

>>4841988
Fucking boomer faggots why do they have to shit up our markets REEEEE

>> No.4844245

>>4844026
Everybody wants to be the hedge found that shorted bitcoin. They wanna feel like they got in early and then long again.

What i want to happen
>Polish wizards print magic money to liquidate boomers

What will happen
>...

>> No.4844296

>>4843738
Y'all didn't understand. I am not talking about buying those new futures.

I'm talking about a possible options strategy in light of what may happen when futures trading goes live. The premise was: when the big players get in there will be some increased volatility, so a long straddle/strangle made sense.

>> No.4844345
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4844345

>>4841750
BTC will not grow indefinitely. Bitcoin does not bring investors active income. Only speculative interest. One bitcoin transaction cost of 250 kilowatts of electricity.
It's crazy. It is much smarter to invest in environmentally friendly POS coins with good annual income like Diamond (DMD)
https://bitcoinprbuzz.com/earn-dmd-diamond-alternative-wealth-storage-solution/

>> No.4844346

>>4843214
I'm thinking about putting it into litecoin or something else that is down, when it goes back up, then i'll make more profit

>> No.4844651

>>4844346
When BTC crashes, it takes almost all alts with it. Question is, which alts will jump during that time?

>> No.4845114

>>4844651
I'm putting my money on XMR. At least for when it DOES crash. That or VTC.

>> No.4845261

>>4845114
Brainlet here

Can you explain why it is better to hold XMR during the inevitable BTC crash rather than staying liquid?