**Directional trading**

If you believe the price will go up, you can either buy a call option or sell a put option. Otherwise, if you believe the price will go down, you can either buy a put option or sell a call option.

**Volatility trading**

Predicting the market direction is usually difficult while predicting the volatility could be easier sometimes. Via options, you can long/short volatility easily.

**Long volatility**

If BTC/USD is now 400, and you know the volatility will be high, you can simultaneously buy a CALL option with a strike price equal to 420 and a PUT option 380. Then you will be able to make a profit no matter which direction BTC/USD goes in, because if it goes above 420, the CALL option will win, and if the price goes below 380, the PUT option will win.

**Short volatility**

If BTC/USD is now 400, and you know the volatility will be low, you can simultaneously buy a PUT option with a strike price equal to 420 and a CALL option 380. Then you will be able to make a profit no matter which direction BTC/USD goes in. As long as the price is within the range of 380 and 420, your options will win.

**Risk Hedging**

Bitcoin price is very volatile. If you are holding Bitcoins, it is good to buy PUT options to hedge risk. E.g., if you have 2.52 BTC and are worried that the price may drop, you can buy 252 vanilla put options with the current BTC/USD price as the strike price. Your risk is then hedged entirely because the profit of the put options will compensate all possible loss of your 2.52 BTC.

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