What are some 3-legged option strategies that can be applied in the cryptocurrency market?

1 answers

• Nov 24, 2021 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, offers a variety of 3-legged option strategies that can be applied in the cryptocurrency market. These strategies are designed to help traders maximize their profits and minimize their risks. Some examples include the straddle, strangle, and collar strategies. The straddle strategy involves buying a call option and a put option with the same strike price and expiration date. This strategy is useful when traders expect a significant price movement in the cryptocurrency market but are unsure about the direction. The strangle strategy is similar to the straddle strategy, but the call and put options have different strike prices. This strategy is used when traders expect a significant price movement but are unsure about the direction. The collar strategy involves buying a protective put option and selling a covered call option. This strategy is used to limit the downside risk of a long position in a cryptocurrency while generating income from the sale of the call option. These are just a few examples of the 3-legged option strategies offered by BYDFi. Traders should carefully consider their risk tolerance and market conditions before implementing any strategy.
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