How do professional traders use the options market to profit during periods of low volatility? (Part 1)
It may be impossible to predict Bitcoin price fluctuations, but professional traders always use a specific strategy that has high returns and low costs.
Small traders usually use leveraged futures, which have a high probability of liquidation. However, trading in the Bitcoin option market provides excellent investment opportunities for experienced investors who want to maximize their profits and minimize their losses.
Using several call option contracts is a strategy whose return can be six times higher than the possible loss. In addition, depending on the investors’ perspective, this strategy can be used in both bullish and bearish markets.
The lack of transparency of the legal status of cryptocurrencies has long been a significant obstacle for investors. Because of this, when Bitcoin’s uptrend lost strength near the $47,000 level on March 30, traders turned their attention to neutral market strategies. Market neutral strategies are methods by which traders can profit from both rising and falling prices.
By using the Long Butterfly strategy, traders can collect profits even if the price of Bitcoin remains stable.However, you should be careful that Bitcoin option transactions have a specific expiration date; This means that the price must reach a predetermined level in a certain period.