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Which digital currency options have the highest IV?

avatarpreetham varmaDec 27, 2021 · 3 years ago3 answers

I'm interested in investing in digital currency options and I want to know which options have the highest IV (Implied Volatility). Can you provide a list of digital currencies with the highest IV? I'm looking for options that have the potential for significant price movements.

Which digital currency options have the highest IV?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    When it comes to digital currency options with high IV, Bitcoin and Ethereum are usually the top choices. These two cryptocurrencies have the largest market capitalization and the most active options trading. Due to their popularity, they tend to have higher IV compared to other digital currencies. However, it's important to note that IV can vary depending on market conditions and specific options contracts. It's always a good idea to do thorough research and consult with a financial advisor before making any investment decisions.
  • avatarDec 27, 2021 · 3 years ago
    If you're looking for digital currency options with high IV, you might also consider altcoins like Ripple, Litecoin, and Cardano. While these cryptocurrencies may not have the same level of market capitalization as Bitcoin and Ethereum, they can still experience significant price movements and attract options traders. Keep in mind that altcoins can be more volatile and carry higher risks compared to established cryptocurrencies. Make sure to assess your risk tolerance and diversify your portfolio accordingly.
  • avatarDec 27, 2021 · 3 years ago
    According to a recent analysis by BYDFi, a digital currency exchange, the options contracts of Chainlink and Polkadot have shown relatively high IV in the past few months. These two cryptocurrencies have gained popularity in the decentralized finance (DeFi) space and have attracted options traders looking for potential profit opportunities. However, it's important to conduct your own research and consider the risks associated with investing in these cryptocurrencies. Remember to always trade responsibly and stay updated with the latest market trends.