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What factors should I consider when using an options implied move calculator for cryptocurrency investments?

avatarGourav ChandraDec 25, 2021 · 3 years ago1 answers

When using an options implied move calculator for cryptocurrency investments, what are the key factors that I should take into consideration?

What factors should I consider when using an options implied move calculator for cryptocurrency investments?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    When using an options implied move calculator for cryptocurrency investments, it's important to consider the implied volatility skew. This refers to the difference in implied volatility between different strike prices of options. A significant skew can indicate market expectations of potential price movements. Additionally, you should take into account the cost of options and the potential impact on your overall investment strategy. Higher option premiums can reduce your potential profits or increase your losses. Lastly, it's crucial to stay updated with the latest news and developments in the cryptocurrency market. Market sentiment and external factors can greatly influence the price of cryptocurrencies, so it's important to be aware of any potential risks or opportunities.