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Is there a reliable tool or formula to estimate the implied move in cryptocurrency options?

avatarRicardo YapNov 26, 2021 · 3 years ago3 answers

I'm interested in estimating the implied move in cryptocurrency options. Is there a reliable tool or formula that can help me with this? I want to have a better understanding of the potential price range for a given cryptocurrency option. Can you recommend any tools or formulas that can provide accurate estimates?

Is there a reliable tool or formula to estimate the implied move in cryptocurrency options?

3 answers

  • avatarNov 26, 2021 · 3 years ago
    Sure, estimating the implied move in cryptocurrency options can be a challenging task. However, there are a few tools and formulas that you can use to get a rough estimate. One popular tool is the Black-Scholes model, which is commonly used to estimate the implied volatility of options. While it may not provide an exact prediction of the implied move, it can give you a good starting point. Additionally, some cryptocurrency exchanges offer their own calculators or indicators that can help estimate the implied move. It's always a good idea to use multiple tools and formulas to cross-validate your estimates.
  • avatarNov 26, 2021 · 3 years ago
    Estimating the implied move in cryptocurrency options is not an exact science, but there are some reliable tools and formulas that can help. One tool that many traders use is the Options Calculator, which allows you to input the relevant data and calculate the implied move. Another approach is to use historical volatility as a proxy for implied volatility. By analyzing past price movements, you can get an idea of the potential range for future price moves. Remember, though, that these estimates are not guaranteed and should be used as a guide rather than a definitive prediction.
  • avatarNov 26, 2021 · 3 years ago
    As an expert in the field, I can tell you that estimating the implied move in cryptocurrency options is a complex task. While there are some tools and formulas available, it's important to understand that they may not always provide accurate estimates. However, one tool that I can recommend is the BYDFi Implied Move Calculator. It takes into account various factors such as historical volatility, option pricing, and market sentiment to provide a reliable estimate of the implied move. Keep in mind that this is just one tool among many, and it's always a good idea to use multiple sources of information to make informed trading decisions.