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Bitcoin Options - now that we are about to get bitcoin futures on a major exchange (CME), is there a viable path towards bitcoin options? Has anyone heard anything or feel any inclination that a bitcoin options may be around the corner?
I think that if the Futures contracts proved to be liquid, the Options market will follow.
Be patient until such time the CME and CBOE launch their products.
In my opinion, Options in unregulated markets could be distorted (manipulated) depending on where they are heavily concentrated.
Thanks,
Matt Z
Optimus Futures
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
The futures are going to require a ton of margin, and be out of reach for a lot of retail traders. However, based on my research looking at other options on futures it looks like options might be a great way to play.
As far as I know, there will be 2 Bitcoin Futures, one on the CME and CBOE.
They will be different sizes, and I hope would be affordable to small and large traders.
Liquidity is an issue is as well and so far no one can top CME on competing products.
Thanks,
Matt Z
Optimus Futures
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
Well just based on my understanding of span rules you're basically talking 5k per bitcoin. So for the 5 Bitcoin size CME is talking about you'll probably need $20,000 in liquidity. Now if CBOE does a sub bitcoins size we might be talking. Even then it's like standing in front of a freight train. However, I do have a theory about where the top is, and if puts are affordable I'll absolutely buy a few.
I'm fairly new to futures and don't trade bitcoin but I'm interested to see how a new market such as this takes place.
I've read it may be an effective way to keep a ceiling on prices if the futures market is heavily shorted, but I have no idea how the connection between the futures price and bitcoin price is actually established. From what I've read the market is cash settled, so I don't know where the "physical" link between the futures market and the bitcoin world exists...
