How can I use delta and gamma options to hedge my cryptocurrency portfolio?
Srivarshan21Dec 25, 2021 · 3 years ago1 answers
I'm interested in using delta and gamma options to hedge my cryptocurrency portfolio. Can you explain how these options work and how they can be used for hedging? Specifically, how can I use them to manage the risk of my cryptocurrency investments?
1 answers
- Dec 25, 2021 · 3 years agoAs an expert in the field, I can tell you that using delta and gamma options to hedge your cryptocurrency portfolio can be a smart move. Delta options allow you to protect your investments by purchasing options that have a negative delta value. This means that if the price of your cryptocurrencies goes down, the value of your delta options will increase, offsetting some of the losses. Gamma options, on the other hand, allow you to adjust your delta exposure based on the price movements of the underlying asset. By purchasing gamma options, you can increase or decrease your delta exposure to better manage your risk. It's important to note that options trading is not without risks, so it's crucial to do your own research and consult with a financial advisor before implementing any hedging strategies.
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