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How does the 1x2 ratio volatility spread with calls strategy affect the profitability of cryptocurrency investments?

avatarHutchinson MooneyDec 29, 2021 · 3 years ago1 answers

Can you explain how the 1x2 ratio volatility spread with calls strategy impacts the profitability of investing in cryptocurrencies? What are the key factors to consider and how does this strategy work?

How does the 1x2 ratio volatility spread with calls strategy affect the profitability of cryptocurrency investments?

1 answers

  • avatarDec 29, 2021 · 3 years ago
    The 1x2 ratio volatility spread with calls strategy is a popular approach in cryptocurrency investments. It involves buying one call option and selling two call options with different strike prices. This strategy allows investors to benefit from the volatility of cryptocurrencies, as they can profit from both upward and downward price movements. However, it is important to note that this strategy requires careful consideration of market conditions and thorough analysis of the underlying cryptocurrency asset. It is advisable to consult with a financial advisor or conduct extensive research before implementing this strategy to ensure its suitability for individual investment goals and risk tolerance.